J'sco Holdings Signs MOU with China Baoli Energy for 2.4 Million Tons Nickel Supply

From the left, Zhao Yi, Vice General Manager, Han Sang-min, CEO of J-Sco Holdings. Provided by J-Sco Holdings

JSCO Holdings is accelerating the global supply expansion of nickel, a key mineral for secondary batteries.

JSCO Holdings announced on the 6th that it has signed an MOU (Memorandum of Understanding) with Baoli Energy, a subsidiary of Baoli Group (China Poly Group), a leading Chinese state-owned enterprise group, for the supply of 2.4 million tons of nickel.

According to the MOU, JSCO Holdings plans to finalize the main contract within this month after conducting a mine inspection and due diligence in the Philippines with representatives from Baoli Group.

Baoli Group, established in 1983 by the Chinese government, is one of the top 10 state-owned enterprises in China, with 100% of its shares held by the State-owned Assets Supervision and Administration Commission (SASAC) under the State Council. It ranked 191st among the Fortune Global 500 companies in 2023 and has various subsidiaries including Baoli Real Estate, the largest real estate company by market capitalization in China, as well as businesses in defense, finance, arts and culture, science and technology, and defense industry.

Baoli Energy, established in 2006 as an energy-related subsidiary of Baoli Group, operates in defense, electric vehicles, and energy-related businesses. It is known to be expanding its nickel reserves in response to the growth of China’s electric vehicle market and Indonesia’s reduction of nickel ore mining quotas.

A company official explained, “This MOU was signed after visiting China at the request of Baoli Group and conducting detailed discussions on supply volume and conditions. The Chinese side has a positive evaluation of JSCO’s nickel business, so we expect the supply volume to increase further in the future.”

JSCO Holdings is also preparing to sign a main contract with China Chengtong International. The contract is expected to cover 1.2 million tons of nickel and 500,000 tons of iron ore annually, and the details are currently being negotiated. Recently, JSCO secured exclusive sales rights for nickel ore in a total of 2,700 hectares across zones B, C, and D in the Dinagat region of the Philippines, and mining has begun in zone D, which has geographical advantages. Sales from nickel ore supply contracts are expected to start from April.

A company representative said, “Although we initially expected China Chengtong International to be our first export partner, we signed the supply contract first with Baoli Group due to their nickel ore demand. We are also discussing supply with domestic and global companies as well as China Chengtong International, so we expect continued success.”