South Korea’s EcoPro Group, a leading producer of electric vehicle battery materials, has teamed up with Chinese precursor manufacturer GEM Co. to establish an integrated cathode material production facility in Indonesia. This move is aimed at enhancing cost competitiveness in response to the global slowdown in electric vehicle (EV) demand. Indonesia, the world’s largest nickel producer, will serve as the hub for this joint venture, enabling EcoPro to streamline production of both cathodes and precursors, key components in EV batteries.
The partnership includes collaboration across the full cathode materials ecosystem—spanning mining, smelting, and production. EcoPro BM, EcoPro’s cathode-producing arm, will build a consolidated production base around GEM’s existing nickel smelter in Central Sulawesi, Indonesia. The proximity to nickel mines is expected to help reduce production costs, securing an edge over Chinese competitors.
EcoPro Materials, the group’s precursor division, will also acquire a stake in GEM’s Indonesian smelter, further integrating its operations and securing critical raw materials. The venture positions EcoPro to benefit from U.S. tax incentives on EV-related products while addressing rising nickel prices, which account for 40% of cathode manufacturing costs.
The agreement reflects EcoPro’s broader strategy to weather the current downturn in the EV sector and strengthen its long-term growth.
