Key Points:
- EcoPro Group invests $11 million in PT Green Eco Nickel, a nickel smelter in Indonesia, securing a 9% stake.
- EcoPro plans to increase its stake in Green Eco Nickel and invest in another Indonesian smelter to meet the growing demand for EV battery materials.
- The move aligns with anticipation of a potential trade deal between Indonesia and the U.S., which could benefit Washington’s push for clean energy vehicles.
- EcoPro aims to produce 200,000 tons of EV battery materials by 2027, requiring a stable supply of 100,000 tons of nickel annually.
EcoPro Group, a leading electric vehicle (EV) battery materials producer based in South Korea, is ramping up its investment in Indonesia to ensure a stable nickel supply, a crucial component for EV batteries. The move comes amid anticipation of a potential trade deal between Indonesia and the U.S., which could benefit Washington’s push for clean energy vehicles.
On Monday, EcoPro Co., the group’s holding company, announced a $11 million investment for a 9% stake in PT Green Eco Nickel, a smelter owned by GEM Co., China’s largest battery recycling company, located in Sulawesi, Indonesia. This strategic investment allows EcoPro to secure a portion of nickel production equivalent to its stake in the smelter.
EcoPro plans to increase its stake in Green Eco Nickel, which currently produces approximately 20,000 tons of nickel annually. Additionally, the company intends to invest in another nickel smelter in Indonesia to bolster its supply chain for EV battery minerals.
Harry Chang, managing director of EcoPro’s global resources development office, emphasized the company’s goal to establish a stable materials supply chain through continuous investments in nickel smelters. He highlighted the importance of such investments in light of the U.S. Inflation Reduction Act (IRA), which offers incentives for EVs assembled in the U.S. with domestically sourced battery minerals.
Indonesia, the world’s top nickel producer, has been in talks with the U.S. to negotiate a trade agreement focused on critical EV battery minerals, particularly nickel. EcoPro’s investment aligns with the anticipation of securing up to 100,000 tons of nickel annually, driven by the group’s ambitious goal to produce 200,000 tons of EV battery materials by 2027.
In March 2022, EcoPro acquired a 9% stake in PT QMB New Energy Materials, located in the Indonesia Morowali Industrial Park, from GEM. QMB boasts an annual nickel production capacity of 50,000 tons.
EcoPro Materials, a subsidiary of EcoPro Group, plans to utilize the nickel procured from Indonesia to produce nickel sulfate, a crucial raw material for next-generation rechargeable batteries. These materials will be supplied to EcoPro’s cathode manufacturing units, including EcoPro BM Co. and its joint venture with Samsung SDI Co., EcoPro EM.
By diversifying its supply chains and investing in nickel smelters, EcoPro aims to secure raw materials consistently and enhance its price competitiveness in the EV battery materials market.
