Ecopro Invests Additional $11 Million to Secure Nickel in Indonesia

Acquisition of 9% Stake in Local Nickel Smelter under 'China Operation'
Targeting 200,000 Tons of Precursors by 2027
"Stable Supply of 100,000 Tons of Nickel Needed"

Ecopro has invested $11 million (approximately 14.8 billion KRW) to secure shares in a nickel refinery in Indonesia.

On the 25th, Ecopro announced that it acquired a 9% stake in 'Green Eco Nickel,' an Indonesian nickel refinery owned by Chinese precursor material producer Geelinmei (GEM). Located on Sulawesi Island, Indonesia, 'Green Eco Nickel' produces about 20,000 tons of nickel annually. Indonesia has the largest reserves and production volume of nickel, a key mineral for secondary batteries.

Ecopro stated, "We will secure additional nickel corresponding to our investment stake," and added, "We plan to increase our stake in 'Green Eco Nickel' in response to the U.S. Inflation Reduction Act (IRA)."

Ecopro Materials has set a goal to produce about 200,000 tons of precursor materials by 2027. To achieve this, Ecopro aims to secure approximately 100,000 tons of nickel stably.

Exterior view of the QMB office in Indonesia
Photo by EcoPro

Previously, Ecopro expanded its nickel supply chain through equity investments in the 'QMB' nickel refinery phases 1 and 2 located in the Morowali Industrial Park (IMIP) in Sulawesi Province, Indonesia. QMB produces a total of 50,000 tons of nickel annually. Ecopro Materials uses this nickel as raw material for secondary battery precursor materials and supplies it to affiliated companies producing cathode materials.

Last year, Ecopro changed its business purpose at the shareholders' meeting to "exploration, extraction, and development of domestic and overseas resources." The company is striving to secure stable supply volumes and strengthen price competitiveness amid competition for secondary battery raw materials.

Jang In-won, Head of Ecopro Global Resources Division, said, "We will focus on building a stable raw material supply chain through continuous investment in nickel refineries, which are key minerals for secondary batteries," and added, "We also plan to invest in shares of another nickel refinery in Indonesia in response to the IRA."