EcoPro finishes initial stage of W700b smelter construction in Indonesia
EcoPro, a South Korean battery materials manufacturer, has announced plans to diversify its business portfolio with a significant investment in Indonesia. In partnership with PT Vale Indonesia, EcoPro aims to build additional nickel smelters and establish an integrated production complex in the International Green Industrial Park (IGIP) project in Sambalagi, Sulawesi. This expansion is expected to provide a stable revenue structure for EcoPro, complementing its existing cathode materials business.
EcoPro has already invested in four nickel smelters since 2022: QMB, Meiming, ESG, and Green Eco Nickel, all located in the Morowali Industrial Park on Sulawesi Island. The second-phase investment will take place later this year.
The investment in the smelters is expected to generate an average of 180 billion won annually through 2030, including profits from Mixed Hydroxide Precipitate (MHP) sales. In the first half of this year alone, EcoPro posted 56.5 billion won in investment gains from the smelters.
MHP is a nickel intermediate that is cheaper than refined nickel and contains cobalt needed for producing nickel-cobalt-manganese precursors. By securing approximately 28,500 tons of MHP annually, EcoPro aims to cut production costs of high-nickel NCM cathodes by 20-30 percent.
This move is also strategic for price competitiveness in the mid- to low-end stock market. By securing local nickel feedstock and streamlining logistics, EcoPro aims to reinforce its position in the stock market today.
The Indonesian project is significant for EcoPro as it diversifies the group's business portfolio beyond secondary battery manufacturing into the smelting industry. EcoPro's CEO, Song Ho-jun, has stated that this project is a key step in the company's growth strategy.
Green Eco Nickel, which generates about 350 billion won in annual revenue and 100 billion won in operating profit, will become a subsidiary of EcoPro Materials as part of this expansion.
With this expansion, EcoPro is poised to strengthen its position in the global battery materials market, providing a stable revenue structure and price competitiveness in the mid- to low-end stock market today.
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