Highlights

  • Sphere Corp will acquire a 10% interest in the ENC HPAL project at a USD 2.4 billion valuation.
  • Sphere will offtake its proportional share of nickel cathode and has agreed to purchase additional volumes at market pricing.
  • Nickel Industries’ ownership in ENC remains unchanged, with the transaction implemented through a reduction in Decent Resource’s shareholding.

Nickel Industries Limited (ASX:NIC) has announced a strategic partnership for its Excelsior Nickel Cobalt (ENC) high-pressure acid leach (HPAL) project, with South Korean aerospace materials manufacturer Sphere Corp. set to acquire a 10% interest. The transaction values ENC at USD 2.4 billion and is expected to complete in early Q1 2026.

Strategic Investment at Project Level

The investment positions Sphere Corp as a strategic partner in ENC, a next-generation HPAL project located in Indonesia. The transaction does not alter Nickel Industries’ current 44% interest in ENC, as Sphere’s entry is facilitated through Decent Resource reducing its ownership stake.

Funding for the transaction is expected to be finalised in early Q1 2026. Upon completion, Sphere will offtake its 10% share of nickel production in the form of nickel cathode and has entered into a separate offtake agreement for volumes above its equity entitlement, priced at prevailing market rates.

Aerospace Supply Chain Alignment

Sphere Corp is a KOSDAQ-listed manufacturer specialising in premium alloys and precision materials for the global aerospace sector. The company is a supplier of specialised nickel and superalloys to SpaceX and recently announced a 10-year supply contract valued at approximately USD 1 billion to support rocket component manufacturing.

Through Sphere’s participation, ENC-produced nickel cathode will undergo qualification for aerospace applications. This process may support future supply opportunities into North American aeronautical and aerospace markets, subject to customer and regulatory requirements.

ENC Project and Production Profile

ENC represents the next phase of Nickel Industries’ downstream expansion strategy. The project is designed to produce mixed hydroxide precipitate (MHP), nickel and cobalt sulphate, and nickel cathode. Once commissioned, ENC is expected to produce approximately 72,000 tonnes of nickel metal per annum.

Nickel Industries has been expanding its downstream processing footprint alongside its established nickel pig iron operations. The Company holds controlling interests in the Hengjaya Mine and four rotary kiln electric furnace (RKEF) projects that supply the stainless steel industry. More recently, Nickel Industries acquired a 10% interest in the Huayue Nickel Cobalt (HNC) HPAL project, adding MHP to its product portfolio.

NIC shares gained 6.59% to AUD 0.89 per share at the time of writing on 2 January 2026.