EcoPro Boosts Lithium-Ion Battery Production with $11M Investment in Indonesian Nickel Smelter

EcoPro, a prominent South Korean battery materials company, has invested $11 million for a 9 percent stake in Green Eco Nickel, an Indonesian nickel smelter operated by the Chinese firm GEM. This move is aimed at augmenting the supply of nickel, a vital component in lithium-ion battery manufacturing.

Located in Sulawesi Island, Indonesia, the Green Eco Nickel smelter has an impressive annual nickel production capacity of around 20,000 tons. EcoPro's investment not only secures additional nickel supplies in proportion to its shareholding but also positions the company favorably in Indonesia, the global leader in nickel reserves and production.

EcoPro plans to gradually enhance its stake in the Green Eco Nickel smelter, further supported by the incentives offered by the US Inflation Reduction Act. This strategic investment aligns with the production goals of EcoPro Materials, EcoPro's subsidiary, which aims to manufacture approximately 200,000 tons of anode material precursors by 2027. To achieve this ambitious target, EcoPro needs to ensure a steady supply of about 100,000 tons of nickel.

The company had previously fortified its nickel supply chain through investments in QMB 1 and QMB 2, two additional nickel smelters operated by GEM within Indonesia's Morowali Industrial Park, boasting a combined nickel output of 50,000 tons annually.

Nickel from these Indonesian smelters is transformed into nickel sulfate by EcoPro Materials, which then serves as the essential input for precursor production. These precursors are subsequently utilized in cathode manufacturing by EcoPro's affiliates, EcoPro BM and EcoPro EM.

EcoPro expanded its corporate mission to encompass resource exploration, extraction, and development activities, both domestically and internationally. This broader mandate underscores the company's commitment to securing essential materials for secondary battery production and expanding its operations within Indonesia, in line with the demands set forth by the Inflation Reduction Act.

Jang In-won, head of global resources development at EcoPro, emphasized the company's dedication to investing in nickel smelters critical for battery production and its plans to bolster its Indonesian investments, demonstrating EcoPro's strategic vision for growth in the burgeoning global battery market.