Nickel Industries Ltd (ASX: NIC) has confirmed its 44% shareholding in the Excelsior Nickel Cobalt (ENC) HPAL project remains unchanged, following a transaction that will see South Korean alloy manufacturer Sphere Corp acquire a 10% interest in the project at a US$2.4 billion valuation
The investment will be implemented through a reduction in Decent Resource’s ownership, with funding expected to complete in early Q1 2026. ENC is Nickel Industries’ next-generation HPAL development in Indonesia and is expected to produce approximately 72,000 tonnes of nickel metal per annum, including nickel cathode, mixed hydroxide precipitate and nickel and cobalt sulphate
“We are very pleased to announce this transaction with Sphere for the acquisition of a 10% interest in ENC and associated offtake of nickel cathode. The fact that Sphere, as one of the key accredited suppliers to SpaceX, has chosen to invest in ENC demonstrates the quality of the ENC cathode, the traceability of the product and our goal for ENC to be a global showpiece as a bottom cost-quartile, sustainable producer of high-quality nickel," Sphere, managing director Justin Werner said.
"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 demand the highest product quality and is forecast to grow by approximately 8% CAGR to 2030.”
Offtake agreements
Under the agreement, Sphere will offtake its proportional share of nickel cathode and has also entered into a market-priced offtake arrangement for additional volumes above its equity entitlement. Sphere is a KOSDAQ-listed manufacturer of high-performance specialty alloys for the aerospace sector and a key supplier to SpaceX, having recently announced a 10-year supply contract valued at around US$1 billion
Nickel Industries said qualification of ENC nickel cathode through Sphere could open potential supply opportunities into North American aerospace and aeronautical markets, marking ENC’s first offtake arrangement into Western markets