EcoPro BM Rights Offering Subscription Rate Hits 103%; Nickel Investment Begins in Earnest

Strengthening competitiveness in ternary cathode materials with investment in Indonesian nickel smelter
Vertically integrating supply chain from raw materials to cathode materials... New shares to be listed Nov. 5

EcoPro BM will invest funds raised through a rights offering in a nickel smelter in Indonesia to strengthen its competitiveness in ternary cathode materials.

EcoPro BM CI. EcoPro BM

EcoPro BM said on Oct. 19 that subscriptions in its rights offering for its employee stock ownership association and existing shareholders reached 103.25%. It received subscriptions for a total of 10,222,629 shares, against 9,900,990 shares slated for issuance. The new shares are scheduled to be listed on Nov. 5.

EcoPro BM plans to invest 765 billion won of the funds raised through the offering in the BNSI nickel smelter in Indonesia. The remaining 121.1 billion won will go toward investment in its Hungarian plant, a production base in Europe.

The BNSI nickel smelter is part of a project being pursued by the EcoPro Group with Indonesian nickel mining company PTVI (PT Vale Indonesia) and others. EcoPro and EcoPro BM will take leading roles in the project as major shareholders, and the facility is expected to have 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 plans to accelerate the development of a vertically integrated supply chain spanning nickel raw materials, precursors and cathode materials.

Securing raw materials directly will enable the company to reduce the cost burden from fluctuations in international nickel prices while ensuring a stable supply of materials. Its strategy is to use this foundation to strengthen its competitiveness in winning orders from global battery manufacturers and automakers.

An EcoPro BM official said, "This meaningful result demonstrates shareholders' confidence in the company's mid- to long-term growth strategy and investment plans. We will focus our investment of the funds raised on building a nickel supply chain in Indonesia, improving the cost competitiveness and supply stability of ternary cathode materials, and strengthening the foundation for sustainable growth."

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