EcoPro to Promote 'Integrated Anode Material' Business with GEM in Indonesia

Former Chairman Dongchae Lee Meets with GEM Chairman Gaehwa Heo

Lee Dong-chae, former chairman of EcoPro (center), is taking a commemorative photo with Heo Gae-hwa, chairman of GEM (right), and Wang Min, vice chairman of GEM (left), after discussing cooperation plans for super-gap competitiveness at the EcoPro headquarters. Photo by EcoPro

EcoPro BM is partnering with Chinese company GEM, a precursor (intermediate cathode material) manufacturer, to advance a business encompassing the entire cathode material ecosystem in Indonesia.

According to EcoPro on the 9th, Lee Dong-chae, former chairman of EcoPro and the company's largest shareholder, recently met with Heo Gae-hwa, chairman of GEM, at EcoPro's headquarters in Ochang, Cheongju, Chungbuk, where they agreed on this plan.

Through this collaboration, EcoPro aims to establish a value chain covering the entire cathode material ecosystem, from smelting to precursor to cathode active materials. This is expected to reduce production costs and lead to a significant decrease in cathode material prices. GEM operates a nickel smelter in Indonesia and has also secured competitiveness in precursor materials.

The cathode material industry consists of four major ecosystem sectors: mining, smelting, precursor, and cathode active materials. GEM holds world-class competitiveness in nickel smelting. EcoPro is the world's number one producer of high-nickel cathode materials. In this regard, EcoPro plans to form a task force (TF) to carry out practical work with GEM and finalize the business structure as soon as possible.

During the meeting with Chairman Heo, former EcoPro Chairman Lee Dong-chae stated, "Without disruptive innovation, it is impossible to overcome the current 'chasm' (temporary stagnation in a growth industry)." He added, "Based on the strong trust built over the past 10 years with GEM, we have decided to pursue a project in Indonesia to establish an integrated system encompassing smelting, precursor, and cathode materials." In response, GEM Chairman Heo Gae-hwa said, "Based on 10 years of cooperation with former Chairman Lee and EcoPro, we have decided to unite as one to overcome the current crisis in the battery materials business."

Former Chairman Lee also emphasized a sense of crisis. He said, "The chasm caused by excess capacity will continue for a considerable period," adding, "If EcoPro becomes complacent with the current situation, it could disappear in 3 to 4 years. This collaboration will be a breakthrough to overcome the battery chasm."

Additionally, plans are underway to strengthen the competitiveness of EcoPro Materials, the EcoPro Group's precursor business unit. Former Chairman Lee Dong-chae and Chairman Heo Gae-hwa agreed to support EcoPro Materials' entry into the smelting industry and secure nickel resources compliant with the U.S. Inflation Reduction Act (IRA) through GEM's Indonesian nickel smelting plant, 'Green Eco Nickel.' Located on Sulawesi Island, Indonesia, 'Green Eco Nickel' is a smelter producing approximately 20,000 tons of nickel annually. In March, EcoPro invested about 15 billion KRW to acquire a 9% stake in Green Eco Nickel.

Meanwhile, EcoPro, the holding company of the EcoPro Group, recently held a board meeting and approved the appointment of former Chairman Lee Dong-chae as a standing advisor. EcoPro stated that the current management strongly requested Lee's return to management to overcome the secondary battery crisis and prepare future growth engines. Former Chairman Lee was sentenced to two years in prison for violating laws related to the capital market and financial investment business but was pardoned and reinstated last month as part of the Liberation Day special pardon list. An EcoPro official expressed expectations, saying, "Lee's unique leadership will greatly help overcome the current secondary battery crisis and lay the foundation for sustainable future growth."