Ecopro BM's rights offering draws 103.25% subscription rate as funds target Indonesia nickel smelter

Ecopro BM said Monday its rights offering to employee shareholders and existing shareholders achieved a subscription rate above 100%, with the proceeds earmarked for investment in an Indonesian nickel smelter to strengthen the company's competitiveness in high-nickel cathode materials.

The company said subscriptions totaling 10,222,629 shares were received against a planned issuance of 9,900,990 shares, yielding a final subscription rate of 103.25%. The new shares issued through the rights offering are scheduled to list Nov. 5.

The result reflects confidence from employees and existing shareholders in Ecopro BM's medium- and long-term growth strategy and investment plans.

Of the funds raised, Ecopro BM plans to direct 765 billion won ($570 million) toward investment in the BNSI nickel smelter — the centerpiece of its integrated cathode material value chain in Indonesia — and 121.1 billion won toward its factory in Hungary, its European production base.

The BNSI nickel smelter is a project Ecopro Group is pursuing together with Indonesian nickel mining company PT Vale Indonesia and other partners, with Ecopro and Ecopro BM leading the project as major shareholders. The smelter is designed to have an annual nickel production capacity of 90,000 metric tons, which the group expects will secure a stable nickel procurement base.

Nickel is a key raw material for high-nickel cathode materials. Ecopro BM said the BNSI investment will accelerate its push to build a vertically integrated supply chain spanning nickel ore, precursors and cathode materials.

Internalizing raw materials would reduce exposure to commodity price swings while also securing supply stability. Ecopro BM said it intends to use this foundation to sharpen its competitiveness in winning orders from global battery manufacturers and automakers.

"This is a meaningful result that demonstrates our shareholders' trust in the company's medium- and long-term growth strategy and investment plans," an Ecopro BM official said. "We will concentrate the funds secured on building a nickel supply chain in Indonesia to improve the cost competitiveness and supply stability of our cathode materials, and to solidify a sustainable growth foundation."

Meanwhile, Ecopro BM recently signed a memorandum of understanding with Samsung SDI to cooperate on materials development for all-solid-state batteries, targeting commercialization of sulfide-based all-solid-state batteries by 2027.

The two companies plan to deepen cooperation from the early stages of development through quality evaluation and the establishment of a mass production framework, with the aim of raising technological maturity and business competitiveness.