Japan’s Idemitsu increases stakes in Vecco Group

Japan’s Idemitsu Kosan announced on Wednesday that it will raise its ownership in Vecco Group to 50.1 per cent from 14.7 per cent, giving it a controlling stake in the Australian vanadium developer as it expands into critical minerals for batteries.

Idemitsu is entering the renewable energy storage market by creating an integrated vanadium supply chain, from mine development to electrolyte production. This move marks the company’s full-scale entry into the critical minerals business.

Vecco is developing the Debella project in Queensland, focusing on a vanadium mine and an electrolyte plant for vanadium flow batteries (VFBs) to establish a local supply chain for vanadium production.

In 2023, Vecco started Australia’s first commercial vanadium electrolyte facility. A feasibility study for the vanadium mine is scheduled for early 2025, with construction in 2026 and operations starting in 2027, according to Idemitsu.

“Demand for energy storage will likely grow in developed countries as power consumption increases and the share of renewable energy rises,” Idemitsu senior executive officer Yuzo Yoshida told reporters.

Attribution: Reuters

Subediting: M. S. Salama