Australia's Alchemy Resources signs lithium partnership with Japan's JOGMEC
Updates with background, further details from paragraph 2
Sept 30 (Reuters) -Australian miner Alchemy Resources ALY.AX said on Monday it had signed an agreement for a Japanese government agency to earn up to 51% of its Roe Hills tenure in Western Australia by funding up to A$6 million ($4.15 million) of exploration costs.
Alchemy Resources would manage the project during the partnership period, and upon Japanese agency JOGMEC earning its vested interest in the tenements, the two companies will form a joint venture, the company said in a statement.
The Roe Hills tenure is part of the diversified miner's Karonie lithium and gold project.
The agreement comes amid a global downturn in prices for electric vehicle battery materials lithium and nickel, which have been hit by slower-than-expected EV uptake.
Japan Organization for Metals and Energy Security (JOGMEC) is tasked with securing stable resource supplies for Japan, as concerns over critical mineral shortages grow.
As resource-rich Australia seeks investment from allies for green energy projects, the agreement aligns with efforts to bolster minerals crucial for the energy transition, which are at risk of supply chain disruptions.
($1 = 1.4457 Australian dollars)
Reporting by Roshan Thomas in Bengaluru; Editing by Kim Coghill and Jamie Freed
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