EcoPro and China’s GEM Partner to Build Integrated Cathode Material Ecosystem in Indonesia

EcoPro has announced plans to collaborate with Chinese precursor manufacturer GEM to develop an integrated cathode material business in Indonesia. This partnership will encompass the entire cathode material value chain, including smelting, precursor production, and cathode materials, aiming to disrupt market prices through significant cost reductions.

EcoPro Materials will acquire a stake in GEM’s Indonesian nickel smelter, Green Eco Nickel, marking its entry into the smelting sector. Located in Sulawesi, Green Eco Nickel produces approximately 20,000 tons of nickel annually. EcoPro invested around KRW 15 billion in March 2024 to secure a 9% stake in the smelter, which is expected to help the company meet U.S. Inflation Reduction Act (IRA) regulations by securing non-Chinese nickel resources.

The collaboration between EcoPro, the world leader in high-nickel cathode materials, and GEM, with its world-class nickel smelting capabilities, is expected to be a game changer in the battery material market. The companies have been working together for over a decade, starting with the transfer of NCA precursor technology to GEM in 2015. Now, their partnership is expanding into the smelting business to create a seamless value chain for battery materials.

Former EcoPro Chairman Lee Dong-chae and GEM Chairman Heo Gae-hwa emphasized the importance of this project for overcoming the current crisis in the battery materials business. Lee, who recently returned to EcoPro as a senior advisor, highlighted the need for "disruptive innovation" in the cathode market, while Heo expressed confidence in the partnership’s ability to lead through technological advancement.

EcoPro and GEM will form a task force to execute the project, with plans to strengthen EcoPro Materials’ position in both the smelting and precursor markets.