EcoPro completes initial battery materials investment in Indonesia

Core Viewpoint - EcoPro Company has completed the first phase of its investment in battery raw materials on the Indonesian island of Sulawesi, focusing on nickel smelting to secure a stable supply of key materials for electric vehicle batteries [1][2]. Investment Details - The first-phase investment amounts to KRW 700 billion (approximately US$ 502 million) and involves four nickel smelters, providing a supply of 28,500 tons of mixed hydroxide precipitate (MHP) annually, sufficient for around 600,000 electric vehicles [2]. - MHP is a nickel intermediate that is cheaper to produce than refined nickel and contains cobalt, essential for nickel-cobalt-manganese (NCM) battery precursors [2]. Future Plans - EcoPro is preparing to launch the second phase of its investment, the International Green Industrial Park project in Sambalagi, which will include additional smelters and production facilities for precursors, cathodes, and battery cells [3]. - The company aims to reduce the cost of producing high-nickel NCM cathodes by up to 30% through these investments [3]. Strategic Importance - The new investment is expected to diversify EcoPro's portfolio and improve profitability, helping to offset sluggish demand in the cathode materials sector [4]. - The CEO of EcoPro emphasized the significance of entering the smelting industry, which will provide a more stable revenue structure alongside its existing cathode materials business [4].