Sphere Corp Acquires 10% Stake in Indonesian Nickel Project for $2.4 Billion
Sphere Corp has agreed to purchase a 10% stake in the Excelsior Nickel Cobalt HPAL project in Indonesia for $2.4 billion. This acquisition highlights the project's commercial viability and comes amid rising nickel prices and supply constraints.
Insights:
South Korea's Sphere Corp has announced its acquisition of a 10% stake in the Excelsior Nickel Cobalt HPAL project from Decent Resource, a Hong Kong-based company, at a valuation of $2.4 billion. This strategic move underscores the commercial viability of the project, which is set to become the world's first High-Pressure Acid Leach (HPAL) facility capable of producing three class-1 nickel products: mixed hydroxide precipitate (MHP), nickel sulphate, and nickel cathode. The deal is expected to be finalized with funding completion in the first quarter of 2026.
Sphere Corp, known for its role as a materials manufacturer and special alloy supplier to SpaceX, has entered into an offtake agreement for its 10% share of nickel as cathode at market price. Additionally, the company will offtake further volumes beyond its ownership share, highlighting its strategic interest in securing nickel supply amid current market conditions.
