Alchemy Resources, Australia, signs lithium partnership agreement with Japan's JOGMEC

Alchemy Resources, an Australian miner, announced on Monday that it had signed a deal with a Japanese government agency for the Japanese agency to fund up to A$6,000,000 ($4,15,000,000) in exploration costs to gain up to 51% ownership of Roe Hills in Western Australia.

Alchemy Resources will manage the project for the duration of the partnership. Once the Japanese agency JOGMEC has acquired its vested interests in the tenements the two companies are expected to form a joint-venture, according to a company statement.

The Roe Hills project is part of a lithium and gold miner's Karonie project.

The agreement is a response to a worldwide decline in the prices of lithium and nickel used for battery materials for electric vehicles, as EV adoption has been slower than expected.

Japan Organization for Metals and Energy Security is tasked to ensure stable resources supplies for Japan as fears about critical mineral shortages increase.

The agreement is in line with the efforts of Australia, a resource-rich country, to secure investment for green energy projects from its allies. Minerals are crucial for energy transition and supply chains can be disrupted. $1 = 1.4457 Australian Dollars (Reporting and editing by Kim Coghill, Jamie Freed).

(source: Reuters)