EcoPro BM signs an MOU with GEM on business cooperation in early August 2024
EcoPro BM Co., a South Korean cathode materials producer, said on Tuesday it has signed a memorandum of understanding (MOU) with GEM, a Chinese battery materials and precursor supplier, to further strengthen their strategic cooperation in the areas of rechargeable battery raw materials.
Under the MOU signed early this month, EcoPro BM would be able to procure nickel from GEM on a stable basis, while trying to increase its purchase of precursors, key ingredients of cathodes, from the Chinese company.
EcoPro BM relies heavily on its affiliate EcoPro Materials Co. for the procurement of precursors.
GEM will also put EcoPro BM at top of the candidate list when choosing partners for nickel production projects in Indonesia.
EcoPro BM said its strategic cooperation with GEM will bolster its self-sufficiency in core minerals and strengthen its battery raw material supply chain so that it will be able to mass-produce cathode materials at competitive prices.
Precursors account for 65%-70% of the cost of cathodes made of nickel, cobalt, and manganese.
EcoPro BM’s headquarters in Cheongju, North Chungcheong Province
The MOU was signed at the nickel smelting factory of QMB, a majority owned by GEM and located on the island of Sulawesi, Indonesia.
QMB is a joint venture with other Chinese and Japanese companies. EcoPro purchased a 9% stake in the venture in 2022.
Additionally, EcoPro, a holding company, invested $11 million to buy a stake in PT Green Eco Nickel, a smelter owned by GEM.
Thanks to the investments in GEM-operated plants in Indonesia, EcoPro BM annually secures 6,000-ton nickel mixed hydroxide precipitate (MHP), a raw material of precursor, from the Chinese partner.
Nickel plays an important role in producing rechargeable batteries as high-nickel batteries offer longer mileage and shorter charging time than other types of batteries.
In 2023, EcoPro exported over 100,000 tons of high-nickel cathode materials, marking the first time it surpassed the milestone.
Last month, EcoPro BM Vice President Kim Jang-Woo said the company was in talks with new customers to supply premium high-nickel cathodes, high-voltage medium-nickel and low-cost cathodes.
By Hyung-Kyu Kim
khk@hankyung.com
Yeonhee Kim edited this article
