Ecopro, a major nickel-rich cathodes manufacturer, has reportedly agreed with China’s GEM Battery to work on cathode materials production.
This includes raw battery mineral mining, smelting, precursors and cathodes, reported Korea Economic Daily. It said Ecopro BM, the Korean group’s cathodes-producing unit, will create consolidated production in Indonesia through the tie-up.
Lee Dong-che, founder and former chairman of Ecopro, is quoted: “It is impossible to get over the current chasm without devastating innovation.” He was referring to the downturn in global EV sales. “We agreed to pursue a project in Indonesia for an integrated system, which covers smelting, precursors and cathode materials, based on the strong trust established with GEM over the past decade.”
GEM already has a nickel smelter in Indonesia with annual capacity of 150,000 tons, the report said. The two companies are likely to form a joint venture with a manufacturing facility around the smelter. That would give cost competitiveness in dealing with Chinese companies.
Ecopro Materials, the group’s precursor manufacturer, is preparing to take a stake in PT Green Eco Nickel, said the report. This is a smelter owned by GEM in Indonesia. That opens new smelting activities and will secure access to minerals eligible for US tax breaks.
