ASIATODAY.ID, JAKARTA — Indonesia’s nickel industry has reached a new global milestone. Sphere Corp, a South Korean company known as a specialty alloy supplier to Elon Musk’s SpaceX, has officially acquired a 10% stake in the Excelsior Nickel Cobalt (ENC) smelter project located in the Indonesia Morowali Industrial Park (IMIP), Central Sulawesi.
The project carries a valuation of US$2.4 billion, equivalent to approximately IDR 40.17 trillion, positioning it as one of the most strategic investments in Indonesia’s nickel downstream sector at the start of 2026.
ENC is a high-pressure acid leach (HPAL) nickel smelter jointly owned by Nickel Industries Limited—an Australian-listed company affiliated with PT United Tractors Tbk (UNTR)—and Hong Kong-based Decent Resource.
According to an official statement released by Nickel Industries on Friday, January 2, 2026, Sphere will acquire its 10% stake from Decent Resource, while Nickel Industries will retain a 44% ownership in the project.
Beyond equity participation, Sphere will receive its nickel allocation in the form of cathode material and has also signed an offtake agreement to purchase additional volumes beyond its ownership entitlement at market prices.
“We are very pleased to announce this transaction with Sphere Corp. The fact that Sphere—one of SpaceX’s accredited key suppliers—has chosen to invest in ENC validates the quality of our cathode products, product traceability, and our vision to position ENC as a global showcase for high-quality, sustainable, and low-cost nickel production,” said Justin Werner, Managing Director of Nickel Industries.
Gateway to Western Aerospace Markets
Werner emphasized that the deal represents more than a standard investment. It marks ENC’s first offtake agreement into Western markets, opening a direct pathway for Indonesian nickel to enter North America’s aerospace and aeronautics industries—sectors known for the world’s most stringent material standards.
“We strongly welcome the fact that this offtake targets the rapidly expanding aerospace and aeronautics industries, which demand the highest product quality and are projected to grow at approximately 8% CAGR through 2030,” Werner added.
Nickel Industries expects the transaction financing to be completed in early Q1 2026.
World’s First HPAL Project with Three Class-1 Nickel Products
Currently under construction in Central Sulawesi, the ENC project is set to become the world’s first HPAL facility capable of producing three Class-1 nickel products simultaneously, namely: Mixed Hydroxide Precipitate (MHP), Nickel sulfate, Nickel cathode.
This unique capability positions ENC as a critical asset within the global supply chain, particularly for electric vehicles, clean energy technologies, and the aerospace sector.
With the entry of Sphere—a SpaceX supplier—into IMIP Morowali, Indonesia’s nickel industry has officially penetrated the high-technology industrial ecosystem of Western markets, reinforcing the narrative that Indonesia’s downstream strategy is no longer about raw materials, but about becoming a high-value, strategic player in global supply chains. (AT Network)
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