Dynamic Design "Accelerating New Business for Battery Core Material Nickel Minerals"

[Asia Economy Reporter Jang Hyowon] Dynamic Design announced on the 28th that its newly established subsidiary for nickel mineral business in Indonesia, Dynamic Design International (PT. Dynamic Design International), is in the process of acquiring a nickel mineral distribution license.

Hwang Eungyeon, CEO of Dynamic Design, who previously served as the head of the Indonesian branch at a major corporation, established Dynamic Design Indonesia (PT. DYNAMIC DESIGN INDONESIA) in May with the goal of innovatively reducing manufacturing costs in the tire mold business. In October, the company completed the acquisition of a factory site of 21,000 pyeong in the Cirebon area of Indonesia for approximately 6 billion KRW.

He stated, “While implementing management efficiency procedures for our existing business, we have completed the establishment of Dynamic Design International to proceed with the nickel business in Indonesia, the world's largest producer and holder of nickel deposits, as a plan to secure an additional stable source of revenue. Nickel is an essential material for electric vehicle batteries.”

Nickel, a key material for electric vehicle batteries, is a mineral with a precarious supply. The amount of nickel required per electric vehicle is expected to increase from 36 kg in 2022 to 41 kg in 2030. Additionally, the demand for nickel is rising as the share of high-nickel batteries, which increase nickel content to over 80%, grows.

Moreover, steady demand for stainless steel, another major use of nickel, suggests that supply of nickel for batteries will be significantly insufficient starting in 2024.

Among the increasing nickel demand, Indonesia draws the most attention. Indonesia is estimated to hold about one-quarter of the world's nickel reserves. According to the 2022 survey by the U.S. Geological Survey (USGS), Indonesia ranked first with 22% of the world's mineable nickel reserves. Its production volume is 1,000 kilotons (Kt), accounting for 37% of global production.

The Indonesian government is leveraging this to build a "global electric vehicle hub." With the goal of establishing a domestic electric vehicle value chain from raw materials such as nickel to battery and vehicle production, the government has banned the export of nickel ore, effectively compelling companies to participate directly in production and related activities.

During preparations to establish a production base in Indonesia, the company reviewed the nickel mineral business as a new venture, focusing on nickel as a major production source necessary for electric vehicle battery production, with Indonesia having the largest reserves and production volume. The company aims to secure sales and profits through this, contributing to the stabilization of its core business, management stability, and laying the foundation for expanding local operations.

A representative of Dynamic Design said, “To conduct a nickel mineral business in Indonesia, it is necessary to go through a complicated corporate establishment process and separately acquire a nickel mineral distribution license. We have completed all administrative procedures and are preparing to proceed with the nickel business, expecting to obtain the license soon.”

The company official also stated that Dynamic Design International signed a memorandum of understanding (MOU) on October 21, 2022, with PT. Karya Nusa Indonesia Satu as a partner in the Indonesian nickel mineral distribution business. The MOU aims to actively cooperate in concluding contracts necessary for nickel mines, refineries, and other business operations to enable the distribution of 2 million tons of nickel minerals annually.

He added, “After signing the MOU, we are closely consulting with our partner to promptly complete the permits and approvals required for nickel mineral distribution. Once these permits are obtained, the new business is expected to gain momentum.”

Meanwhile, Dynamic Design recently appointed Hwang Eungyeon as an inside director of EV Advanced Materials, its largest shareholder, last week to strengthen business cooperation.