Sumitomo Metal Mining is to spend 4.8bn yen ($49m) to increase production in Japan of lithium nickel oxide used in cathodes of batteries for electric vehicles.
Sumitomo Metal will expand the monthly output capacity for the material at the Isoura plant in Ehime Prefecture, southwestern Japan, from 300 tons to 850 tons to meet rapidly growing demand for hybrid and electric vehicles. The work will be completed in June next year.
The company supplies the material to major Japanese electronics maker Panasonic, which produces lithium-ion batteries used for models of US electric vehicle maker Tesla Motors.
