Sphere starts mass production of nickel in Indonesia, expanding aerospace materials supply chain

[Financial News] Sphere has begun producing high-purity nickel in Indonesia, strengthening the supply chain for materials needed by major industries, including aerospace. The supply chain is structured to bring locally sourced nickel to Korea for processing by domestic partners before supplying it to major U.S. companies.
Supply chain management specialist Sphere said on the 16th that it had completed the Excelsior Nickel Cobalt (ENC) plant in the Indonesia Morowali Industrial Park (IMIP) and begun commercial production of high-purity Class 1 nickel cathodes (negative electrodes) and MHP, an intermediate nickel-cobalt product.
Sphere invested $240 million (about 320 billion won) in the ENC project early this year. In return, it secured offtake rights to receive the production exclusively over the long term.
The plant has the capacity to produce 72,000 tonnes of high-purity nickel a year. It is equipped with three large-scale high-pressure processing units called autoclaves, and a 22-kilometer pipeline for transporting slurry. Four weeks after operations began, it reached about 50% of its designed production capacity.
Sphere plans to bring nickel cathodes produced locally directly into Korea and supply them to its manufacturing partners. The partners will process them into superalloy materials and precision components capable of withstanding extreme conditions, including high temperatures and pressure. The finished products will be exported directly to major customers in the United States.
High-purity nickel is a key raw material for high-performance alloys used in space launch vehicles and aircraft engines. It is also used in oil and gas drilling equipment and power generation facilities, making a stable supply of raw materials important.
A Sphere representative said, "With this plant now operating, we have established a business foundation spanning everything from raw material procurement and processing to the supply of finished products." The representative added, "This supply chain has enabled us to cut procurement times by 90% or more and deliver products when customers need them. We also expect to reduce risks in fulfilling long-term supply contracts by leveraging the cost competitiveness that comes with securing raw materials."
Sphere's consolidated revenue for the first half of this year increased 200% year-on-year. The company also secured import letter of credit facilities worth 30 billion won from major banks, establishing the financing needed to import raw materials.
A company representative emphasized, "The first production of nickel cathodes at the ENC plant, developed in collaboration with Tsingshan Group and Nickel Industries, is an achievement that strengthens the foundation of our aerospace supply chain business." The representative added, "By connecting our raw material supply chain with the processing expertise of Korean manufacturers, we will respond smoothly even to large orders and enhance our business competitiveness and shareholder value."
[email protected] Choi Do-seon Reporter