EcoPro to invest $575M in Indonesian smelter to boost nickel supply chain

South Korea-based EcoPro BM Co. Ltd. plans to invest 765 billion won ($574.5 million) in its Indonesian nickel smelter to strengthen its supply chain for battery materials, the company said on Oct. 19.

EcoPro owns a 39% stake in the Bahodopi Nickel Smelting Indonesia project, which it develops with PT Vale Indonesia and other companies. The project is expected to provide EcoPro with a stable supply of nickel raw materials while mitigating exposure to price fluctuations.

EcoPro said it is seeking to build a vertically integrated supply chain covering nickel raw materials, precursors and cathode materials to improve the cost competitiveness of its ternary cathode materials, which are used in electric vehicle batteries and other high-tech applications.

Indonesia's low-cost operating environment has helped the country attract foreign investment in nickel processing following a 2020 ban on nickel ore exports. Indonesia now dominates the market, accounting for 66.6% of global mined nickel supply in 2025, according to S&P Global Market Intelligence data.

Platts, part of S&P Global Energy, assessed nickel sulfate at $3,906/metric ton DDP China on Oct. 19, up $1/mt from Oct. 16 but down 20.3% from a recent high of $4,899/mt on May 19, amid weak downstream demand for nickel-manganese-cobalt battery materials.

EcoPro raised the funds through a paid-in capital increase offering that targeted the employee stock ownership association and existing shareholders.

The company said it will also invest 121.1 billion won in its factory in Hungary, which will manufacture high-nickel cathode materials for premium electric vehicles in Europe.