EcoPro is ramping up its investment efforts to secure its supply of nickel, a key mineral for secondary batteries. The South Korean company announced on Monday that it acquired a 9 percent stake in Green Eco Nickel, a nickel refinery operated by Chinese precursor manufacturer Green Eco-Manufacture (GEM) in Indonesia, for $11 million.

Located on Sulawesi Island in Indonesia, a country with one of the world’s largest nickel reserves and production levels, Green Eco Nickel produces 20,000 tons of nickel annually.

The agreement allows EcoPro to secure additional nickel corresponding to its investment stake. Nickel serving as a crucial mineral for secondary batteries, and EcoPro plans to gradually increase its stake in Green Eco Nickel in response to the United States’ Inflation Reduction Act (IRA).

The South Korean company also aims to produce about 200,000 tons of precursors by 2027 and anticipates securing 100,000 tons of nickel to achieve this goal through its own supply chain.

EcoPro previously expanded its nickel supply chain via a stake investment in QMB 1 and 2, nickel refineries within the Morowali Industrial Park (IMIP). QMB collectively produces 50,000 tons of nickel annually. The nickel obtained from Indonesia is converted into precursor raw materials for secondary batteries and supplied to cathode material producers like EcoPro BM.

The company passed an amendment to its articles of incorporation at its shareholders’ meeting in March 2023, adding ‘exploration, extraction, and development of domestic and foreign resources’ to its business objectives. EcoPro aims to diversify its supply chain, secure stable quantities in the competition for secondary battery raw materials and enhance price competitiveness through investments in nickel refineries.

By Yang Yeon-ho and Minu Kim

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