Sphere Corp has acquired a 10% stake in the Excelsior Nickel Cobalt project in Indonesia, signalling a shift towards closer upstream-downstream collaboration and high-grade battery materials production.
Sphere Corp has taken a strategic equity and offtake position in the Excelsior Nickel Cobalt (ENC) high-pressure acid leach (HPAL) project in Indonesia, a move that underlines growing integration between upstream nickel development and high‑specification downstream man...
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ufacturing.
According to Kalkine Media, the South Korean materials and alloy maker has agreed to acquire a stake and offtake rights in the ENC project being developed by Nickel Industries. Multiple reports add detail: TopDaily states Sphere invested about $240 million to secure a 10% interest in Excelsior International Investment Pte. Ltd., the Singapore vehicle developing ENC, while Kalkine and Proactive Investors value the project at roughly US$2.4 billion and confirm the 10% equity and offtake arrangement. Nickel Industries itself says it retains a 44% interest in the project.
ENC, sited in the Morowali Industrial Park in Central Sulawesi, is designed to be a large‑scale HPAL operation producing a suite of class‑one nickel products. Company material and Nickel Industries’ public operations information indicate the project is expected to deliver about 72,000 tonnes of nickel metal per annum, including nickel cathode, mixed hydroxide precipitate and nickel and cobalt sulphate. The ENC configuration targets battery‑grade and high‑purity nickel suitable for electric vehicles, specialty alloys and other demanding industrial applications.
Sphere’s participation is pitched as supply‑chain assurance for high‑quality nickel cathode that meets the traceability and performance thresholds of aerospace and other advanced industries. Industry coverage notes Sphere already supplies specialised alloys into aerospace supply chains , including work for space launch programmes , and the offtake arrangement gives it cathode volumes aligned with its equity share, with the option to purchase further volumes at market prices.
The deal exemplifies a broader trend toward closer ties between resource developers and end users. Kalkine Media highlights that the agreement intends to align production standards, environmental oversight and downstream readiness with western industrial demand, while Proactive Investors reports the transaction will be effected through a reduction in another investor’s stake and that funding is expected to complete in early Q1 2026.
Analysts and company statements frame ENC as more than a raw‑materials play: it aspires to demonstrate how HPAL‑derived nickel and cobalt can be produced with the traceability, environmental reporting and product forms required by supply chains for electric mobility, renewable infrastructure and high‑temperature alloy manufacture. Nickel Industries’ annual report for 2023 and its operational disclosures emphasise the group’s transition toward class‑one nickel products and downstream processing capabilities intended to serve battery and specialty markets.
While the economics and schedule of HPAL projects are subject to construction, commissioning and market risks, the combination of a strategic downstream partner and structured offtake arrangements may shorten the path to market acceptance. For western aerospace and advanced manufacturing customers, the promise of certified, traceable class‑one nickel with predictable logistics and technical support is a key differentiator.
The transaction also highlights Indonesia’s growing role as a producer of refined battery metals. By locating ENC within the Morowali Industrial Park and structuring participation from global materials buyers, Nickel Industries and Sphere aim to connect Indonesian processing capacity directly to overseas industrial demand.
As ENC advances, attention will focus on financing completion, construction milestones, product qualification and the practical delivery of traceable cathode to downstream manufacturers. According to the various company statements and market reports, the Sphere arrangement both secures a strategic nickel supply for a specialist downstream user and signals how resource projects are increasingly designed with end‑market integration in mind.
Source: Noah Wire Services
