Ecopro and GEM Sign MOU to Strengthen Value Chain

Establishing Strategic Partnerships for Securing Precursors and Critical Minerals

Ecopro BM and GEM signed a Memorandum of Understanding (MOU) on strategic cooperation for secondary battery raw materials and the entire industrial chain this month at the nickel smelter QMB located in Sulawesi Province, Indonesia. Photo by Ecopro

EcoPro is establishing a strategic partnership with Chinese precursor manufacturer GEM to strengthen the supply chain of raw materials for secondary battery materials. The strategy aims to diversify the supply chain of key minerals such as nickel and stabilize precursor supply, thereby enhancing competitiveness in the global secondary battery materials market.

EcoPro announced on the 20th that its affiliate EcoPro BM and GEM signed a memorandum of understanding (MOU) this month at the nickel smelter QMB located in Sulawesi Province, Indonesia, regarding raw materials and overall value chain strategic cooperation.

The signing ceremony was attended by Choi Moon-ho, CEO of EcoPro BM, Kim Jang-woo, Head of Management Support Division, and Shin Ho-sang, Head of Strategic Purchasing Team. From GEM, key executives including Chairman Heo Gae-hwa and President Jang Myo participated.

Through this MOU, the two companies agreed to strengthen the global competitiveness of the entire value chain from nickel and precursors to cathode materials by ▲ securing nickel raw materials ▲ mid- to long-term precursor supply ▲ establishing strategic research mechanisms.

EcoPro BM will cooperate to secure nickel raw materials and investments through this MOU. GEM plans to prioritize EcoPro as a joint venture partner when making investments to secure nickel in Indonesia.

EcoPro BM will also receive a stable supply of precursors, which are raw materials necessary for the cathode material manufacturing process, from GEM. GEM will supply precursors to EcoPro BM at competitive prices and quality, and EcoPro BM will strive to maintain GEM as the largest supplier when procuring precursors from external companies outside the affiliate.

This MOU signing is expected to strengthen EcoPro BM’s secondary battery material value chain. It is evaluated that the foundation has been established to mass-produce and sell cathode materials at competitive prices by increasing the self-sufficiency rate of key minerals and strengthening the raw material supply chain.

EcoPro has continued efforts to strengthen the value chain under the judgment that enhancing resource securing capabilities is key to improving global competitiveness. A representative example is when the holding company EcoPro acquired a 9% stake in the nickel smelter QMB operated by GEM in Indonesia in 2022, securing 6,000 tons per year of nickel intermediate product (MHP), followed by investment in the second phase of QMB.

In March of this year, investments to secure key minerals have continued, including a stake in the Indonesian nickel smelter 'Green Eco Nickel.' EcoPro also established the Global Resources Office under the holding company in January to take charge of value chain diversification tasks.

Choi Moon-ho, CEO of EcoPro BM, said, "EcoPro Group and GEM have built a solid partnership in the secondary battery materials field so far. With this MOU signing as an opportunity, we plan to strengthen cooperation to maximize the benefits of both companies across the entire secondary battery value chain."

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