On March 28, 2022, in order to cope with worldwide industrial competition, grasp the initiative of future industrial development, and strengthen the close cooperation between nickel resources and downstream markets, GEM and ECOPRO, the world’s leading enterprises in the supply chain of new energy materials from China and South Korea, signed an equity cooperation agreement of the Indonesia Qingmeibang (QMB) nickel resources project and an MOU of the supply of NCA&NCM high-nickel ternary precursor materials from 2023 to 2026. According to the equity transfer agreement and the NCA&NCM high-nickel ternary precursor material supply MOU, GEM will transfer 9% of the QMB equity to ECOPRO and ECOPRO will purchase 700,000 tons of high-nickel precursor materials from GEM during 2023-2026. That will maximize the interests of both parties by achieving ECOPRO’s strategic obtaining of nickel resources and GEM’s lock on the precursor market. The agreement aims to jointly build a globally competitive nickel resource guarantee system and precursor materials guarantee system, meet the needs of both parties in supply chain, and maximize the interests of both parties by deepening the strategic cooperation between the two parties, focusing on the core advantages of both and comprehensively building a supply chain value system of “exploiting nickel resources-manufacturing precursor-manufacturing ternary material”. The signing ceremony was held in Jingmen Park of GEM and Cheongju of South Korea. Mr. Lee Dong Che, chairman of ECOPRO, Professor Xu Kaihua, chairman of GEM Group, and Ms. Wang Min, board director and joint actual controller, attended the signing ceremony.

Fig. 1 GEM and ECOPRO signed the equity cooperation agreement of Indonesia Qingmeibang (QMB) nickel resources project

Fig. 2 GEM and ECOPRO signed the NCA&NCM high-nickel ternary precursor materials supply MOU in 2023-2026

Fig. 3 ECOPRO & GEM Indonesia Nickel Resources Project Investment Successfully Signed

Before signing the agreement, the two parties watched the VCR of “Boil a Pot of ‘Nickel’ Wine, Create New Energy Brilliance” and reviewed the progress of the Indonesian Qingmeibang nickel resources project. At the beginning, we traveled thousands of miles and waded through mountains and rivers to inspect K Island and prepared for the project of nickel resources. Then the cooperation between enterprises and the construction were started. Later the construction of Indonesian master’s engineering laboratory was completed and high-pressure reactors were installed smoothly... The Indonesian project construction has been realized, which is a giant leap from nothing. Now each construction item is being proceeded rapidly. Recently, more than 500 managerial staff and technical workers have rushed to Indonesia to support the project construction to ensure that the QMB project will be put into operation in the first half of 2022, which is a promise made by GEM to investors.

Since the epidemic is still serious, Lee Dong Che, Chairman of ECOPRO couldn’t sign the agreement with GEM face to face. He expressed his regret and described this cooperation as “the fruit of his friendship with professor Xu based on  trust”. Mr. Lee said ECOPRO and GEM have been continuously cooperating on precursor materials of power battery, and nickel contained in precursor is the most competitive raw material, so nickel and precursor are closely tied up. The current global nickel and lithium market is in a severe situation. As a company producing cathode materials of power battery, Chairman Lee felt proud that ECOPRO can invest in raw materials and build factories. He said that over the years, ECOPRO and GEM have been trusting each other and keeping in-depth cooperation, and are partners forever. “Taking the opportunity of QMB nickel resources project, I hope our cooperation with GEM will not only focus on precursor, but also on battery recycling and nickel resources, so as to achieve win-win cooperation.

Fig. 4 Mr. Lee Dong Che, Chairman of ECOPRO, attended the online signing ceremony

The haze is gone and flowers are blooming in the spring. In his speech, Chairman Xu Kaihua first praised Mr. Lee Dong Che for his vision and ECOPRO being a great enterprise. He believes that the brotherly friendship between GEM and ECOPRO has been tested by difficulties and time, and the foundation of their cooperation is as solid as a rock.
Chairman Xu Kaihua pointed out that this cooperation demonstrates the determination and ambition of the two sides to work together to meet the industrial challenges. He believes the future success belongs to GEM and ECOPRO. The cooperation between the two parties has risen from the level of product to that of equity on nickel resources, which is a reflection of deep mutual trust, integration and in-depth cooperation between them. According to their different roles in the supply chain, GEM leads the development of nickel resources to ensure the allocation of nickel resources in common industrial chain. ECOPRO is responsible for the development of high-nickel ternary materials to ensure the downstream market of nickel resources and precursor in common industrial chain. They will jointly promote the global competitiveness and strategic interests of the industrial chain, and create an excellent example of outstanding companies from China and South Korea working together to build a green future.

Chairman Xu Kaihua recalled the friendly cooperation between GEM and ECOPRO in the past seven years. He said: “Looking back at the past, our friendship is deep and long-lasting. We have witnessed each other’s brilliant achievements.” In the past years, GEM and ECOPRO both experienced thrilling moments. During those moments, they help each other and trust each other. They overcame difficulties and forge to the bright future. Since they signed the first MOU on Strategic Cooperation in NCA Automotive Power Battery Materials in 2015, GEM and ECOPRO have worked together for 7 years on high-nickel precursor, power battery recycling, raw material manufacturing, etc. Guided by green values and based on the principle of mutual benefit, the two sides cooperated sincerely with open minds, exchanged culture and technology with each other, and payed visits. They jointly dealt with various challenges. They established friendship of deep mutual trust, deeply integrated value relationship of industrial chain. Especially during the global epidemic, the two companies fought disease hand in hand and maintained the stability and rapid development of the supply chain. They wrote a moving story of “treating each other with all sincerity and sharing weal and woe”.

Fig. 5 Professor Xu Kaihua, Chairman of GEM Group giving a speech

After the signing ceremony, Chairman Lee Dong Che strongly hoped to meet with Chairman Xu Kaihua and Board Director Wang Min as soon as possible after the epidemic to talk about the better future. Director Wang Min also warmly invited Chairman Lee Dong Che to go to Indonesia’s K Island together to witness mutual cooperation. In the wave of new energy in the world, ECOPRO and GEM will set sail hand in hand and create brilliant future.
Attendees of this online ceremony in Korea include President Joo Jaehwan of ECOPRO BM, Executive Park Jaeha, Executive Kim Sunjoo, Executive Chang In-yuan, Director Lee Seunghwan, Manager Zhaoquan, of ECOPRO, Executive Kwon Geonoh, Principal Manager Park Jungyu of ECOPRO BM. And attendees of GEM include Zhou Bo, board director and executive deputy general manager of GEM Group, Wu Guangyuan, principal of engineering and technology of QMB project, Dr. Zhang Kun, deputy general manager and director of Research Institute, Jiang Miao, deputy general manager and principal of overseas markets and nickel-cobalt raw materials, Wang Qiang, deputy general manager and leader of dispatching center, and Cai Jinjin, general manager assistant and director of quality department.