GEM Expands NCM Precursor Capacity in Indonesia to Meet Growing Global Demand

Green Eco-Manufacture (GEM)

Green Eco-Manufacture (GEM), a leading Chinese producer of battery metals and materials, has announced plans to significantly expand its nickel-cobalt-manganese (NCM) precursor production capacity in Morowali, Indonesia. This strategic move aims to capitalize on the surging demand for high-nickel ternary precursor materials used in power batteries, particularly in overseas markets like the US and Europe.

Capacity Boost and Strategic Integration

GEM's expansion project will increase its NCM precursor capacity to an impressive 50,000 tonnes per year, a substantial jump from the initially planned 30,000 tonnes per year.  The entire project, with a total investment of 2.15 billion yuan ($294 million), is slated for completion in October. This increased capacity will enable GEM to better serve the growing needs of the electric vehicle (EV) market.

GEM's strategy involves developing its existing facilities in both Indonesia and South Korea to create a vertically integrated industrial value chain. This chain will span from nickel feedstock to precursor materials and ultimately to cathode active material (CAM), thereby strengthening GEM's competitive edge and solidifying its market position in the US and Europe.  This integrated approach will allow GEM to control its supply chain and ensure a stable supply of high-quality materials.

Meeting the Needs of Battery Manufacturers

This expansion comes as GEM recently secured a significant supply agreement with South Korean battery maker EcoPro. In August 2024, the two companies signed a deal for GEM to supply 265,000 tonnes of high-nickel NCM precursors to EcoPro BM, EcoPro's subsidiary specializing in high-nickel power battery ternary CAM for new energy vehicles, between 2025 and 2028.  

Further strengthening their partnership, EcoPro announced plans to collaborate with GEM in the first quarter of the year to establish an integrated production facility in Indonesia, encompassing activities from smelting to CAM production.  EcoPro is also restructuring its operations, planning to merge its battery recycling unit Ecopro CNG and lithium unit Ecopro Innovation.