Initiating a Feasibility Study on Commercializing Battery Recycling in Oceania- Signing of separate MOUs with Sumitomo Metal Mining and Australian and New Zealand Companies to Build a Circular Supply Chain for Next-Generation Batteries -

Sumitomo Corporation (Headquarters: Chiyoda-ku, Tokyo; Representative Director, President and CEO: Shingo Ueno) has entered into separate memoranda of understanding (MOUs) with Sumitomo Metal Mining Co., Ltd. (Headquarters: Minato-ku, Tokyo; President and CEO: Nobuhiro Matsumoto; hereinafter “Sumitomo Metal Mining“), Envirostream Australia (an Australian battery recycling company), and Phoenix Recycling Group (a New Zealand battery collection and recycling company) regarding the collection and recycling of used lithium-ion batteries, and will begin exploring the commercialization of a circular battery supply chain in the Oceania region. Through these agreements, Sumitomo Corporation will initiate feasibility studies toward the commercialization of battery recycling in the Oceania region. Through this initiative, Sumitomo Corporation will collect and pre-process used lithium-ion batteries, convert them into an intermediate material known as "black mass" (*), and establish a circular battery supply chain for recycling them into new battery materials, while evaluating its feasibility. Battery recycling efforts in the Oceania region are still at an early stage, making this a pioneering initiative in the region.

Challenges and Trends Surrounding Battery Circularity

With the global expansion of EV adoption and the increasing deployment of renewable energy, the importance of collecting and recycling end-of-life batteries is rapidly growing. At the same time, critical minerals such as nickel, cobalt, and lithium contained in batteries are highly concentrated in specific regions, making the establishment of a circular supply system through recycling an urgent priority from the perspective of securing a stable supply of these resources. In Japan, in particular, establishing a “domestic resource circulation model” to recover and reuse battery resources used both domestically and overseas is increasingly recognized as essential for ensuring a stable supply of critical minerals. Furthermore, regulations requiring traceability of battery origin and recycling rates—particularly in Europe—are advancing, necessitating enhanced supply chain transparency and digital capabilities.
In addition, cooperation between Japan and Australia is progressing in strengthening critical mineral supply chains and energy security, and this initiative is aligned with these developments.

Overview of This Initiative

Based on these MOUs, Sumitomo Corporation will work in collaboration with its partners to advance the following initiatives:

• Establishment of a used battery collection system in Australia and New Zealand
• Production of black mass through battery pretreatment (discharging, disassembly, and crushing)
• Return of resources to Japan and integration with smelting and refining process
• Establishing a "horizontal recycling" model in which used batteries are recycled into new batteries

In addition, the Japan Oil, Gas and Metals National Corporation (JOGMEC) plans to provide support for this initiative through its technical assistance program, which addresses on-site needs and other requirements.

Building Next-Generation Supply Chains Using Digital and AI Technologies

Sumitomo Corporation is promoting the development of a battery traceability and data infrastructure leveraging digital and AI technologies, in alignment with the Ouranos Ecosystem concept promoted by the Japanese government. Under the Sumitomo Corporation Group’s “Digital & AI Strategy (DAIS)”, this initiative will

• Enable lifecycle data management of battery usage history and residual value (including compliance with European regulations, etc)
• Visualization of raw material origins and recycling rates

and other measures to link the entire battery lifecycle through data. This will enable us to go beyond mere regulatory compliance to create new value through data utilization and achieve the advancement and efficiency of the entire supply chain.

Through this initiative, Sumitomo Corporation will establish a business foundation for battery recycling in Oceania. Furthermore, in the growing battery recycling market driven by the increasing adoption of electric vehicles and renewable energy, the company will contribute to the realization of a sustainable resource cycle and a stable supply of resources.

(*) A powdered intermediate material obtained by discharging, dismantling, and crushing used lithium-ion batteries. It contains valuable metals such as nickel, cobalt, and lithium.