Ecopro to Become Major Shareholder in Indonesian Nickel Smelter... Plans 1.2 Trillion Won Capital Increase

Securing a 39% Stake in the BNSI Smelter

Participating in a Project to Produce 90,000 Tons of Nickel Annually

Ecopro Group is expanding its nickel supply chain by participating as a major shareholder in the second phase of the Indonesian nickel smelter project. For this purpose, Ecopro BM plans to raise 1.2 trillion won through a paid-in capital increase.

View of the under-construction BNSI smelter site in Sulawesi, Indonesia. Ecopro

On June 30, Ecopro announced that both Ecopro and Ecopro BM will participate as major shareholders, securing a total stake of 39% in the 'BNSI (Bahodopi Nickel Smelting Indonesia) Smelter' project within the Indonesia International Green Industrial Park. The total investment amounts to approximately 1.5 trillion won.

The BNSI smelter project is a joint venture with Indonesian state-owned mining company PTVI (PT Vale Indonesia) and others, and is expected to have an annual nickel production capacity of 90,000 tons. This volume is sufficient to supply about two million electric vehicles. Through this project, Ecopro will secure an additional long-term purchase contract of approximately 36,000 tons per year, in addition to the 29,000 tons it already secured through the existing IMIP project in Indonesia.

Through this investment, the company plans to establish a 'minerals–precursor–cathode materials–recycling' supply chain connecting Indonesia, Korea, and Hungary. Based on internalizing raw materials, Ecopro aims to enhance the cost competitiveness of its NCM cathode materials and strengthen its competitiveness in securing contracts from global battery cell manufacturers and automakers.

On this day, the board of directors of Ecopro BM decided on a paid-in capital increase of 1.2 trillion won, issuing 9,900,990 new common shares. The funds raised will be used to secure a stake in BNSI, invest in the Hungarian plant, and cover operating and facility investment costs. The subscription for the new shares will take place on October 15–16 for the employee stock ownership association and existing shareholders, and the public offering will be held on October 20–21. The new shares are scheduled to be listed on November 5.

Holding company Ecopro has decided to participate in the paid-in capital increase by subscribing to more than 120% of its allotted shares. The company explained that this is part of responsible management to demonstrate confidence in the growth potential of the Indonesian battery minerals business and to alleviate concerns about shareholder value dilution.

Choi Moonho, CEO of Ecopro BM, stated, "This capital increase is a decision to preempt the global nickel market and enhance the competitiveness of our NCM cathode materials," adding, "By combining high-nickel technology with cost competitiveness, we aim to secure leadership in the global NCM battery market."

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