EcoPro Company, a South Korean producer of cathode materials used in batteries for electric vehicles (EVs) and other applications, announced that it has completed the first phase of its investment in its battery raw materials project on the Indonesian island of Sulawesi.

EcoPro said it has completed a KRW 700 billion (US$ 502 million) first-phase investment in four nickel smelters, helping it secure a stable supply of the key battery material. The investment gives the company a supply of 28,500 tons of mixed hydroxide precipitate (MHP) per year, enough for around 600,000 EVs. MHP, a nickel intermediate, is cheaper to produce than refined nickel and also contains cobalt, which is also a key ingredient in nickel-cobalt-manganese (NCM) battery precursors. The four smelters, located in the Morowali Industrial Park in Sulawesi, had been under construction since 2023.

EcoPro confirmed it is also preparing to launch the second-phase of its investment in Sulawesi, the International Green Industrial Park project in Sambalagi, which is scheduled to begin later this year. The company plans to build additional smelters, in partnership with mining company PT Vale Indonesia, followed by plants for the production of precursors, cathodes and also battery cells. With its Indonesian investments, the company hopes to cut the cost of producing high-nickel NCM cathodes by up to 30%.

EcoPro pointed out that the new investment will help offset sluggish overall demand in the cathode materials sector by diversifying its portfolio and improving profitability. The company’s CEO, Song Ho-jun, recently stated: “The Indonesian project is significant in that it diversifies the group's business portfolio beyond secondary battery manufacturing by entering the smelting industry. EcoPro's entry into the smelting business, along with its cathode materials business, will provide a more stable revenue structure.”