Ecopro, Additional 112 Billion KRW Investment in Nickel Refinery in Indonesia Operated by China

Last Year QMB 1st Investment... Annual Supply Commitment of 6,000t Nickel
CEO Song Hojun "Strengthening Vertical Integration of Raw Materials-Intermediate Materials-Cathode Materials"

Ecopro is expanding its equity investment to secure nickel, a key mineral for secondary batteries.

On the 8th, Ecopro announced that it signed a contract for the second phase investment in the nickel refinery 'QMB' operated by China's Ge Lin Mei (GEM) in Indonesia. Last week, Ecopro CEO Song Hojun visited Indonesia and met with GEM Chairman Heo Gaehwa to finalize the QMB Phase 2 investment contract.

Ecopro will invest a total of $86 million (approximately 112 billion KRW) in QMB, and the amount of nickel supplied is also expected to increase.

QMB is a nickel refinery in Indonesia operated by China's GEM. It is located in the Morowali Industrial Park (IMIP) in Sulawesi Province. QMB is currently establishing production facilities for nickel intermediate products (MHP) with an annual capacity of 30,000 tons based on nickel metal.

Through this second phase expansion, the production capacity is expected to increase to a total of 50,000 tons annually based on nickel metal.

Last year, Ecopro acquired about a 9% stake through the QMB Phase 1 investment and secured an annual supply of approximately 6,000 tons of nickel. In August, 400 tons of nickel were imported for the first time through Pohang Port, marking the first success of overseas nickel raw material investment.

The nickel supplied from QMB is converted into nickel sulfate, a precursor raw material for secondary batteries, by Ecopro Materials, then manufactured into precursors and supplied to cathode material production affiliates such as Ecopro BM and Ecopro EM.

Since Ecopro BM and Ecopro EM produce high-nickel materials with a nickel content exceeding 90%, stable nickel supply is very important for business expansion.

Song Hojun, CEO of Ecopro (left), and Heo Gaehwa, Chairman of GEM, are signing the investment contract for the second phase of the nickel smelter QMB in Indonesia on the 3rd.
[Photo by Ecopro]

Based on a long-standing trust relationship, Ecopro and GEM cooperate in various areas including the Indonesian nickel development project and the precursor joint venture project within the Saemangeum Industrial Complex.

CEO Song said, “Through participation in QMB equity, vertical integration from raw materials and intermediate materials to cathode materials has been strengthened. As the holding company of the Ecopro Group, Ecopro will focus more on increasing business profitability and establishing a stable raw material supply chain through expanded raw material investments.”

Ecopro is pursuing supply chain diversification to secure stable quantities and strengthen price competitiveness amid fierce competition for secondary battery raw materials supply.

In March, Ecopro resolved an amendment to its articles of incorporation at the shareholders' meeting to add “exploration, extraction, and development of domestic and overseas resources” to its business objectives, and plans to discover various cooperation channels.

This content was produced with the assistance of AI translation services.