TOKYO, Sept 25 (Reuters) - Japan's Sumitomo Metal Mining (5713.T) said on Monday it will invest 16.9 million Canadian dollars ($12.5 million) in Canada's battery material company Nano One Materials (NANO.TO) to collaborate on manufacturing technology for the material.

The move comes after Japan and Canada agreed to work more closely together to establishing sustainable and reliable global battery supply chains.

Sumitomo Metal supplies the nickel-cobalt-aluminium (NCA) cathode materials for the Panasonic (6752.T) lithium-ion batteries used in Tesla (TSLA.O) electric vehicles (EVs).

Through the investment, Sumitomo Metal will own about 5% of Nano One, which has patented processes for the sustainable production of lithium-ion battery cathode materials, which reduces process complexity and lowers costs than the current technology, the Japanese mining and smelting company said in a statement.

The two companies will work together to develop manufacturing technology for battery cathode materials for EVs at a lower cost and environmental impact, it added.

Sumitomo Metal has been expanding its production capacity of the cathode materials and plans further expansions.