Former Chairman Lee, Pardoned on Last Month's Gwangbokjeol, Makes First Management Move
Partners with China's GEM for Anode Material Business in Indonesia
Lee Dong-chae, former chairman of EcoPro (center), is taking a commemorative photo after discussing cooperation plans for super-gap competitiveness with Heo Gae-hwa, chairman of GEM (right), and Wang Min, vice chairman of GEM (left) at the EcoPro headquarters. Photo by EcoPro
Lee Dong-chae, former chairman of Ecopro and the largest shareholder of the company, recently discussed cooperation plans with the head of Chinese precursor (intermediate raw material for cathode materials) manufacturer GEM China. This is Lee's first business-related move since his special pardon last month. He has effectively begun the process of returning to management.
According to Ecopro on the 9th, Lee met with GEM Chairman Heo Gae-hwa at the Ochang headquarters recently and agreed on a plan to promote a business encompassing the entire cathode material ecosystem in Indonesia.
Through this cooperation, Ecopro aims to establish a value chain covering the entire cathode material ecosystem, from refining to precursor to cathode materials. In particular, they anticipate a significant reduction in production costs and consequently a drastic decrease in cathode material prices. GEM has secured world-class competitiveness in nickel refining. A task force (TF) will be formed to carry out practical work with GEM, and they plan to finalize the business structure as soon as possible.
According to the company, Lee said at the meeting with Chairman Heo, "Without disruptive innovation, it is impossible to overcome the current 'chasm' (temporary stagnation in a growth industry). Based on the strong trust built over the past 10 years with GEM, we decided to promote a project in Indonesia to establish an integrated system encompassing refining, precursor, and cathode materials." In response, Chairman Heo said, "Based on 10 years of cooperation with Lee and Ecopro, we have decided to unite as one to overcome the current crisis in the battery materials business."
Additionally, plans were made to strengthen the competitiveness of Ecopro Materials, which is responsible for the precursor business within the Ecopro Group. Lee and Chairman Heo agreed to support Ecopro Materials' entry into the refining business and secure nickel resources compliant with the U.S. Inflation Reduction Act (IRA) through GEM's Indonesian nickel refining plant, 'Green Eco Nickel.' Located on Sulawesi Island, Indonesia, 'Green Eco Nickel' is a refinery producing about 20,000 tons of nickel annually. In March, Ecopro invested approximately 15 billion KRW to acquire a 9% stake in Green Eco Nickel.
Ecopro and GEM have built a cooperative relationship akin to a three-legged race over the past 10 years. Starting with Ecopro transferring NCA (Nickel-Cobalt-Aluminum) precursor technology to GEM in 2015, they have actively collaborated through equity investment during the establishment of Ecopro Materials in 2017 and recycling technology cooperation with Ecopro CNG.
GEM, established in 2001, is China's leading recycling company with an annual precursor production capacity of 300,000 tons and operates a nickel refinery in Indonesia capable of producing 150,000 tons.
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. A company official said, "Lee's unique leadership will greatly help overcome the current secondary battery crisis and lay the foundation for sustainable future growth."
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