EcoPro Materials raised 389 billion won ($290 million) to acquire a controlling stake in Indonesian nickel smelter PT Green Eco Nickel, accelerating the Korean battery supplier’s vertical integration strategy amid intensifying global competition.
The precursor production subsidiary of EcoPro Group will use the funds to purchase a 28% stake in the Indonesian facility, making it the largest shareholder of the operation previously controlled by China’s GEM Co. The smelter on Sulawesi island processes approximately 20,000 tons of nickel annually, a critical material for EV battery production.
EcoPro CEO Song Ho-jun told shareholders on March 26 that the stake acquisition and business combination report could be completed as early as April. The company’s parent already holds a 9% interest in Green Eco Nickel, potentially giving the group a combined 38% ownership.
The investment comes as Korean battery manufacturers scramble to secure reliable sources of nickel amid growing pressure from the US Inflation Reduction Act, which requires battery minerals to be mined or processed in America or free trade partner countries. Indonesia, the world’s largest nickel producer, has become a key battleground for battery manufacturers seeking cost advantages in an increasingly competitive EV market.
EcoPro Materials financed the acquisition through redeemable convertible preferred shares issued at a nearly 12% premium over the reference stock price, attracting investors including IMM Investment, JKL Partners, and Mast Partners. The structure allows investors to convert holdings to common shares beginning April 2026 or redeem them after three or five years.
The strategic move positions EcoPro in direct competition with other battery materials suppliers establishing operations in Indonesia, where environmental and safety concerns have shadowed the rapid industrial expansion of nickel processing facilities.
