EcoPro BM and GEM Strengthen Strategic Cooperation on Battery Raw Materials

EcoPro BM, a South Korean producer of cathode materials, has signed a memorandum of understanding (MOU) with Chinese battery materials and precursor supplier GEM to enhance their strategic partnership in the field of rechargeable battery raw materials. The MOU, signed earlier this month, aims to ensure stable procurement of nickel for EcoPro BM and increase the purchase of precursors—essential components of cathodes—from GEM.

The agreement further solidifies EcoPro BM’s supply chain, enabling it to secure the necessary raw materials to mass-produce cathode materials at competitive prices. Given that precursors account for 65%-70% of the cost of nickel, cobalt, and manganese-based cathodes, this partnership is crucial for EcoPro BM's operations.

Under the MOU, GEM has committed to prioritizing EcoPro BM when selecting partners for nickel production projects in Indonesia, where GEM operates a significant nickel smelting factory through its majority-owned QMB venture. EcoPro BM purchased a 9% stake in QMB in 2022 and has invested $11 million in PT Green Eco Nickel, another GEM-operated smelter in Indonesia.

These strategic investments enable EcoPro BM to annually secure 6,000 tons of nickel mixed hydroxide precipitate (MHP) from GEM, a critical raw material for producing precursors. Nickel’s role is vital in the production of rechargeable batteries, particularly high-nickel batteries, which offer longer mileage and shorter charging times.

In 2023, EcoPro BM made a significant leap by exporting over 100,000 tons of high-nickel cathode materials, surpassing this milestone for the first time. The company continues to engage with new customers to supply premium high-nickel cathodes, high-voltage medium-nickel, and low-cost cathodes, as part of its ongoing growth strategy.