A merican Lithium Minerals Inc., a U.S.-listed but Canadian-managed company, is expected to announce today it has signed a deal with Japan Oil, Gas and Metals Corp. to receive a US$4-million investment to help it develop its lithium project in Nevada.

Sources familiar with the transaction said the investment from the Japanese entity, whose mandate is to secure a stable supply of natural resources for the country, will be invested directly in exploration activities in the western part of Nevada. American Lithium is also keen on developing its boron resources at the same Borate Hills site, about five hours from Las Vegas and 32 kilometres from Chemetall Foote's lithium mine, the only one of its kind in North America.

The investment by the Japanese follows extensive due diligence including a site visit. The investment is in line with the company's plan, to "develop Borate Hills and its other lithium brine exploration projects through co-operation with international partners." On its website, the company said it plans a $4.5-million exploration and development program "aimed at completing an economic pre-feasibility study on the Borate Hills Project to advance the project to the feasibility stage." Rio Tinto has done some past work on the site, particularly for boron.

Lithium is in demand because of the continued growth in consumer electronics, particularly cellphones and laptop computers, the continued growth in demand for electronic/hybrid cars, and as a means of storing power. The expectation is for a fourfold increase to 400,000 tonnes a year over the next decade.

The investment by JOGMEC is at least the third in a lithium-related project so far this year. Last January, Lithium One Inc., a company listed on the TSX Venture Exchange, announced a deal with Korea Resources Corp. to develop the company's lithium brine project in Argentina. KORES will spend $15-million on exploration with the goal of delivering a feasibility study. In the same month, an affiliate of Toyota Motor Corp. signed a deal with Australia's Orocobre Ltd. to develop a mine in Argentina. The affiliate will spend $4.5-million for a feasibility study.

Closer to home, Magna International Inc. spent $10.5-million to acquire a stake in Lithium Americas Corp. Magna plans to invest at least $400-million in lithium-ion battery production over the next three years. It also has a partnership with Kokam Engineering, a South Korean battery maker. There are almost 20 lithium-focused companies listed on either the TSX or the TSX Venture.

American Lithium is something of a turnaround story. Last fall, it hired new management, in part to position itself to take advantage of the expected increase in lithium demand. Hugh Aird was named president and chief executive. Mr. Aird, a veteran of the financial world, recruited Judy Baker, former president of Canada Lithium Corp., as a consultant. Ms. Baker is a geologist who has also worked on Bay Street as both a banker and an analyst.

In time, Mr. Aird recruited new board members including Patrick Reid, former president of the Ontario Mining Association who is chairman; Chris Hobbs, a chartered accountant and co-founder of Pine Point Capital Advisors Inc., which provides financial advisory services to companies in the mining sector; William Deluce, president of Wicklow Consulting Inc., a diversified investment company with global interests in the aviation and mining sectors, and Tim Casgrain, a former senior executive at Brookfield Asset Management and the chairman of the Canadian Broadcasting Corp.