EcoPro Group is set to secure nickel for 1.5 million electric vehicles through its investment in an Indonesian nickel refinery.
On July 12, EcoProBM announced that it held an investor relations (IR) meeting from July 3 to 10 for domestic and international institutional investors. During the IR, EcoProBM outlined the details and background of its ongoing capital increase, funding purposes, and specific usage plans.
In response to the Indonesian government's restrictions on new nickel refinery permits, EcoProBM plans to proactively invest through a capital increase to acquire a stake in the BNSI refinery, maximizing its ability to respond to external regulations.
The nickel produced at the BNSI refinery will be classified as 'Non-PFE' (non-prohibited foreign entity) raw material, meeting the guidelines of foreign regulatory organizations (FEOC).
Following its first-phase investment in the IMIP project in Indonesia, EcoPro Group is expanding its nickel supply chain with a second-phase investment in the BNSI refinery. The BNSI refinery, currently under construction in Sulawesi, Indonesia, is a joint venture with global companies, including Indonesia's state mining company PTVI (PT Vale Indonesia), with EcoProBM leading the project as the major shareholder.
Over the past four years, EcoPro Group has invested approximately 800 billion won in the first-phase project, securing 29,000 tons of nickel annually. With an additional investment of 1.5 trillion won in the second phase, the company aims to secure an additional 36,000 tons, bringing its total nickel supply rights to 65,000 tons. This amount is sufficient to produce about 1.5 million electric vehicles.
Nickel is a key raw material for NCM and NCMA batteries, and higher nickel content can enhance energy density and driving range, making it a strategic mineral that influences electric vehicle performance. As the global battery industry increases its reliance on high-nickel cathodes for high-performance electric vehicles, securing a stable nickel supply has become a critical factor for corporate competitiveness.
EcoProBM anticipates that its investment in nickel, a strategic mineral, will positively contribute to strengthening the value chain for the battery and electric vehicle industries.
Notably, the EcoProBM plant in Debrecen, Hungary, which began commercial production in May, is designed to proactively respond to regional regulations. The company plans to enhance its ability to comply with regional regulatory barriers, such as the European Union's Critical Raw Materials Act (CRMA) and the EU-UK Trade Cooperation Agreement (TCA), through its Debrecen cathode plant linked to the Indonesian nickel supply chain.
Choi Moon-ho, CEO of EcoProBM, stated, "The current global battery industry is at a point where resource security and the ability to respond to trade regulations determine a company's survival. We will secure a leading position in the global NCM battery market by organically combining Indonesian nickel raw materials that fully comply with U.S. and European regulations with our production base in Hungary."
* This article has been translated by AI.
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