EcoPro BM recorded a subscription rate of 103.25% in its capital increase aimed at employee stock ownership and existing shareholders. The funds raised will be used for investments in an Indonesian nickel refinery and a plant in Hungary.
On October 19, EcoPro BM announced that it received subscriptions for a total of 1,022,629 shares against the 990,990 shares planned for issuance, resulting in a subscription rate of 103.25%. The new shares from the capital increase are set to be listed on November 5.
Of the funds raised, EcoPro BM plans to invest 765 billion won in the BNSI nickel refinery in Indonesia and 121.1 billion won in its European production base in Hungary.
The BNSI nickel refinery is a project being pursued by EcoPro Group in collaboration with Indonesian nickel mining company PTVI (PT Vale Indonesia). EcoPro and EcoPro BM are major shareholders in the project, which aims to achieve an annual nickel production capacity of 90,000 tons.
Nickel is a key raw material for high-nickel ternary cathode materials. Through this investment, EcoPro BM aims to expand its vertically integrated supply chain from nickel raw materials to precursors and cathode materials.
The company plans to internalize raw material procurement to reduce the burden of price fluctuations and enhance supply stability. This strategy is expected to strengthen its competitiveness in securing contracts with global battery manufacturers and automakers.
An EcoPro BM representative stated, "This is a significant result that demonstrates shareholders' trust in the company's medium- to long-term growth strategy and investment plans. We will focus the secured funds on building a nickel supply chain in Indonesia to enhance cost competitiveness and supply stability for ternary cathode materials."
Meanwhile, EcoPro BM began commercial operations at its Debrecen plant in Hungary in the first half of this year. This facility has an annual production capacity of 54,000 tons of cathode materials and has started modifications to its existing nickel-cobalt-aluminum (NCA) production line to also produce nickel-cobalt-manganese (NCM) products. The company plans to supply high-nickel cathode materials to European automakers starting in the fourth quarter of 2027.
* This article has been translated by AI.
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