Reducing Earnings Volatility Through Domestic Business Diversification

「In ongoing initiatives, the company is seeking to expand the applications of its matte raw materials from stainless steel raw materials to matte raw materials, leveraging its strength in stable, high-quality production, and continues to discuss various conditions, including quality, with prospective business partners. In the polymetallic nodule contract smelting business, the company is reviewing contract smelting costs and the investment schedule based on the results of a feasibility study to produce battery-grade metal materials and steelmaking raw materials from seabed resources. In the beryllium business, the company is pursuing the initiative primarily with MiRESSO Co., Ltd., a company in Aomori Prefecture. It has entered into a capital and business alliance agreement, participated in the company's Series A financing round, and subscribed for ¥1.5 billion in a private placement to invest in the construction of a pilot plant on the premises of its manufacturing facility, thereby strengthening its framework for commercialisation. In the retail electricity business, the company is expanding into the electricity business, including the supply of electricity generated from high-value-added local renewable energy in cooperation with high-voltage and extra-high-voltage customers and regional power generators. In the calcium aluminate manufacturing and sales business, it has begun manufacturing and sales, while also actively advancing R&D and other activities related to LIBs, where market expansion is expected.」

「For the seabed resources business, which would produce battery-grade metal materials and steelmaking raw materials from seabed resources, we are reviewing contract smelting costs and the investment schedule based on the results of the feasibility study, and are exchanging views with relevant parties in Japan and overseas to develop the business broadly. For the beryllium manufacturing and sales business, which is being pursued primarily with companies in Aomori Prefecture, we are constructing a pilot plant on the premises of our manufacturing facility. During the current interim consolidated accounting period, we entered into a capital and business alliance agreement with the relevant company and will accelerate efforts toward commercialisation. We have also launched a retail electricity business and are expanding into the electricity business, including the supply of electricity generated from high-value-added local renewable energy in cooperation with high-voltage and extra-high-voltage customers and regional power generators. In addition, we are actively advancing R&D and other activities related to LIBs, where market expansion is expected.」

「In the initiative launched jointly with an overseas company, we are conducting a feasibility study for a business producing battery-grade metal materials and steelmaking raw materials from seabed resources, and the study is entering its final stage. In an initiative being pursued primarily with companies in Aomori Prefecture, we have entered into a comprehensive business alliance to make maximum use of our plant's resources for the commercialisation of beryllium manufacturing and sales, and are constructing a pilot plant. In addition, for LIB-related initiatives, where market expansion is expected, we are actively advancing R&D and other activities.」

「As part of efforts to rebuild our earnings base, we are conducting a feasibility study, jointly with an overseas company, for a business producing battery-grade metal materials and steelmaking raw materials from seabed resources. In addition, we have entered into a comprehensive business alliance to make maximum use of our plant's resources for the commercialisation of beryllium manufacturing and sales, an initiative being pursued primarily with companies in the prefecture. We are also actively advancing R&D related to LIBs and aim to launch new businesses at an early stage」

「We are working to establish new recycling technologies with the aim of restructuring the recycling business using existing facilities.」

「We will consider businesses using new recycled resources as raw materials, making use of the manufacturing facilities of our waste recycling business.」

「Diversification of domestic businesses contributing to a circular society ⑤ Restructuring the recycling business」

「The company aims to diversify its businesses in ways that will help reduce earnings volatility and strengthen its earnings base in the future.」