Ecopro Group Secures Nickel for 1.5 Million EVs... "Aiming for Leadership in the Battery Market"

Investment in Indonesian Nickel Smelter
Hungarian Plant Operation Boosts Competitiveness
Choi Moonho: "Resource Security and Trade Regulation Response Are Key to Corporate Survival"

Ecopro Group announced on July 12 that, through its investment in an Indonesian nickel smelter, it has secured enough nickel for a total of 1.5 million electric vehicles. The quantity of nickel obtained is nearly equivalent to the total annual domestic automobile sales in Korea, including both electric vehicles and internal combustion engine cars.

Construction site of BNSI smelter in Indonesia. Provided by Ecofro Group

Ecopro BM held an investor relations (IR) conference for domestic and international institutional investors from July 3 to July 10. During this IR session, Ecopro BM explained the outline and background of the current rights offering, the purpose of fund-raising, and specific plans for the use of proceeds.

Amid the Indonesian government's restrictions on new nickel smelter permits, Ecopro BM plans to maximize its ability to respond to offshore regulations by securing equity in the BNSI smelter through proactive investment via the rights offering. The nickel produced at the BNSI smelter in Indonesia is classified as a "Non-PFE (non-prohibited foreign entity)" material, meeting the guidelines set by foreign entity of concern (FEOC) standards.

Following the first-phase investment (IMIP) in Indonesia, Ecopro Group is expanding its nickel supply chain through investment in the second-phase BNSI smelter. The BNSI smelter, currently under construction in Sulawesi, Indonesia, is a joint project with global companies such as the Indonesian state-owned mining enterprise PT Vale Indonesia (PTVI). Ecopro BM is at the center of this initiative, with Ecopro Group leading the project as the largest shareholder.

Over the past four years, Ecopro Group invested approximately 800 billion won in the first phase to secure 29,000 tons of nickel annually. For the second phase, the company is investing an additional 1.5 trillion won to secure a further 36,000 tons per year, bringing the total nickel supply rights to 65,000 tons annually.

A representative from Ecopro Group stated, "Investment in strategic minerals like nickel will not only enhance the competitiveness of companies such as Ecopro BM, but also play a positive role in strengthening the value chain to address global supply chain risks and ensure the competitiveness of Korea’s battery and electric vehicle industries."

Since May this year, Ecopro BM's Debrecen plant in Hungary has commenced commercial production, enabling it to proactively respond to regulations within Europe. The European Union (EU) is encouraging the use of materials processed and produced within Europe to reduce reliance on specific countries for critical minerals. Sensing this trend, Ecopro BM became the first Korean company to build a cathode materials plant in Hungary with an annual production capacity of 54,000 tons.

By connecting the Indonesian nickel supply chain with the Debrecen cathode materials plant in Hungary, Ecopro BM is strengthening its ability to respond to regulatory barriers such as the EU’s Critical Raw Materials Act (CRMA) and the EU-UK Trade and Cooperation Agreement (TCA). As a result, European automakers and global battery cell manufacturers are reportedly exploring supply partnerships with the company.

It is expected that the differentiated global value chain Ecopro BM is building—supplying 'Non-PFE' nickel produced at the Indonesian BNSI smelter to global customers via its European plant—will reshape the market landscape.

Choi Moonho, CEO of Ecopro BM, recently visited Hungary to meet with European automotive OEMs and to inspect the production readiness of the Hungarian plant.

CEO Choi commented, "In today’s global battery industry, resource security and the ability to respond to trade regulations are now critical to corporate survival. By organically combining Indonesian nickel raw materials that fully comply with U.S. and European regulations with our Hungarian production base, we aim to secure a leadership position in the global nickel-rich battery market."

Meanwhile, Ecopro BM is scheduled to hold a shareholder meeting for general shareholders on July 16. During this meeting, Ecopro BM plans to directly explain the background of the rights offering, the purpose and plans for fund-raising—including the goal of achieving independence in the Indonesian nickel supply chain—and to strengthen communication with the market to enhance shareholder value.

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