Idemitsu and partners to build natural graphite anode supply chain

Japanese oil refiner Idemitsu Kosan has agreed with Australia’s Graphinex, trading house Marubeni and chemicals processor NSC to develop a Japan-Australia supply chain for natural graphite-based anode materials, it said on Wednesday.

The four companies aim to reduce procurement risks for Japan’s battery industry and bolster supply-chain resilience across Asia, Idemitsu said.

Demand for anode materials, a core component of lithium-ion batteries, is rising with global growth in electric vehicles and renewable energy storage.

Japan relies heavily on imported graphite, making stable sourcing a key challenge. China has the world’s largest graphite reserves and dominates its mining and processing.

Possible manufacturing sites

Under the collaboration, the companies plan to use high-grade graphite resources held by Graphinex in Queensland and build an integrated supply chain spanning resource development to anode material production and market supply.

They will now move into detailed discussions, including evaluating potential sites for manufacturing facilities.

“We aim to commercialize the business within several years,” an Idemitsu spokesperson said, adding that the materials will be sold mainly to battery manufacturers and automakers.

In 2024, Idemitsu invested in Graphinex as part of its push into critical minerals, though it has not disclosed the terms.

Separately on Tuesday, state-backed Japan Organization for Metals and Energy Security said it and Hanwa signed a non-binding letter of intent to invest $30 million in NextSource’s graphite spheroidization and high-purity project in UAE, acquiring a 15% interest in the project.

The project aims to produce 14,000 metric tons per year of anode material intermediates, using natural graphite from the Canadian company’s Molo mine in Madagascar, with processing to be carried out in Abu Dhabi.

(By Yuka Obayashi; Editing by David Holmes)