Nickel Industries Limited (ASX: NIC) has secured a high-profile strategic partner for its ENC HPAL project, linking future nickel production to the aerospace and space launch industries.
South Korean materials manufacturer Sphere Corp has agreed to acquire a 10 percent interest in ENC, valuing the project at approximately US$2.4 billion.
Sphere is a KOSDAQ-listed producer of premium alloy and precision materials for the global aerospace sector and is a key accredited specialty-alloy suppliers to SpaceX worldwide.
The investment follows Sphere’s recent announcement of a 10-year supply agreement, valued at around US$1 billion, to provide high-performance nickel and superalloys used in SpaceX rocket components.
Under the agreement, Sphere will offtake its proportional 10 percent share of ENC nickel production as cathode and has also entered into a market-priced offtake arrangement for additional volumes above its ownership interest. Funding of the transaction is expected to be completed in early 2026.
Nickel Industries Managing Director Justin Werner said the transaction highlighted the quality and traceability of ENC’s planned nickel output.
“We are very pleased to welcome Sphere as a strategic partner in ENC,” Mr Werner said.
“Sphere is one of a very small number of companies globally accredited to supply specialty alloys to SpaceX, and its decision to invest in ENC speaks directly to the quality of the nickel cathode we expect to produce and the strength of our environmental and traceability standards.”
Mr Werner said the partnership also marked a significant step in expanding ENC’s customer base into Western aerospace and aeronautical markets.
“This transaction marks the first offtake agreement for ENC material into Western markets, and we are particularly pleased that it is into the growing aerospace and aeronautical industries which demands the highest product quality and is forecast to grow by approximately 8% CAGR to 2030,’’ he said
The transaction does not change Nickel Industries’ ownership interest in ENC, with the 10 percent stake being acquired from joint venture partner Decent Resource.
ENC is currently under construction and progressing toward commissioning, with Nickel Industries continuing to position the project as a long-term supplier of high-quality nickel products to global battery, industrial and specialty alloy markets.
To read the announcement, please click here
About us:
About Nickel Industries Limited
Nickel Industries Limited (NIC) is an ASX-listed company which owns a portfolio of mining and low-cost downstream nickel processing assets in Indonesia.
The Company has a long history in Indonesia, with controlling interests in the world-class Hengjaya Mine, as well as four rotary kiln electric furnace (RKEF) projects which produce nickel matte for the electric vehicle (EV) supply chain and nickel pig iron (NPI) for the stainless-steel industry.
Having established itself as a globally significant producer of NPI, the Company is now rapidly transitioning its production to focus on the EV battery supply chain – recently, the Company has acquired a 10% interest in the Huayue Nickel Cobalt (HNC) HPAL project, adding mixed hydroxide precipitate (MHP) to its product portfolio.
Nickel Industries is now embarking on its next transformative step, investing in Excelsior Nickel Cobalt (ENC), a next-generation HPAL project capable of producing MHP, nickel sulphate and nickel cathode. ENC is expected to produce approximately 72,000 tonnes of nickel metal per annum, diversifying the Company’s production and reducing the Company’s carbon emissions profile – reflecting the strong commitment to sustainable operations.
To learn more, please visit: www. nickelindustries.com
Contact details:
Julia Maguire
+61 2 7257 7338
julia.maguire@thecapitalnetwork.com.au
