South Korea’s EcoPro has completed its first-phase investment of 700 billion won in four nickel smelters in Indonesia. Consequently, the company strengthens South Korea’s access to critical battery materials. Through the EcoPro smelter project, the firm will produce about 28,500 tons of mixed hydroxide precipitate (MHP) annually, enough to supply materials for roughly 600,000 electric vehicles. Moreover, this investment reinforces South Korea’s position in the global EV market.
MHP, a nickel intermediate, costs less than refined nickel while containing cobalt essential for nickel-cobalt-manganese precursors. EcoPro holds stakes in QMB, Meiming, ESG, and Green Eco Nickel smelters at 9 percent, 9 percent, 10 percent, and 38 percent, respectively. All four smelters operate in the Morowali Industrial Park on Sulawesi Island. Therefore, South Korea secures a more stable and cost-effective supply of battery materials through this project.
Green Eco Nickel will become a subsidiary of EcoPro Materials through an equity acquisition. The smelter adds around 350 billion won in annual revenue and 100 billion won in operating profit. EcoPro reported 56.5 billion won in gains from these smelters in the first half of the year. Furthermore, the company expects average annual earnings of 180 billion won through 2030. Consequently, the EcoPro smelter project diversifies South Korea’s EV material supply chain and boosts profitability.
The second phase will start at the International Green Industrial Park in Sambalagi, Sulawesi. EcoPro will collaborate with Indonesian state-owned PT Vale Indonesia to build additional nickel smelters, followed by precursor, cathode, and battery cell plants. This integrated approach streamlines production and reduces costs while ensuring South Korea maintains reliable access to nickel. Additionally, the company expects to cut high-nickel NCM cathode costs by 20–30 percent.
By combining smelting and cathode materials businesses, EcoPro strengthens a stable revenue base. Moreover, this strategy ensures South Korea remains competitive in mid- and low-end EV markets. Overall, the EcoPro smelter project demonstrates a strategic move to secure raw materials and expand South Korea’s global battery footprint. In conclusion, the project supports long-term industry growth and enhances the country’s EV supply chain.
