SU Holdings to Advance Nickel Ore Business, a Key Raw Material for Cathode Materials, with Bounty Farm

SU Holdings is securing nickel (Ni) ore, a key raw material for secondary batteries, to secure future market opportunities.

SU Holdings announced that on the 31st of last month, it signed a memorandum of understanding (MOU) for the acquisition, due diligence, and joint operation of a mine capable of extracting 12 million to 20 million tons over approximately six years with Bounty Farm, which acquired exclusive sales rights from the multinational mining company Glencore.

Nickel is used in precursors, a key raw material for cathode materials in secondary batteries, and currently, domestic companies rely on China for nickel supply. Following the U.S. IRA-related 'Battery Detailed Guidelines' announced in April this year, subsidies are only available for critical minerals from countries with which FTA agreements have been concluded, making alternatives urgently needed. Accordingly, both domestic and international supply and demand are expected to grow.

A company official explained, “Bounty Farm is currently collaborating with domestic financial institutions to acquire mines related to the exclusive sales rights. In addition to Glencore, which already holds exclusive sales rights, we are pursuing long-term off-take contracts with major companies in China and the United Kingdom to secure additional sales channels.”

He added, “With the strong trend of nickel demand expected to continue for the time being, the biggest advantage of this MOU is that we have a nickel supply contract for six years, allowing us to start the business without concerns about securing sales channels. After acquisition, we plan to deploy specialized personnel in each sector to operate the mine.”