LX International Completes Acquisition of Nickel Mine in Indonesia

LX International made a significant announcement on January 16, revealing the successful acquisition of a 60% ownership stake in the AKP mine located in Indonesia. The acquisition, valued at 133 billion won (approximately US$98.9 million), grants LX International not only the majority ownership but also crucial management rights over the AKP mine.

This strategic move was executed through LX International's Indonesian subsidiary, PT.EBI, which promptly completed the transaction by fully disbursing the agreed-upon amount for the AKP mine stake on the same day. The decision to acquire the AKP mine had been deliberated and resolved by LX International's board of directors in November of the preceding year. Subsequently, on January 5, the company injected 135.4 billion won into PT.EBI, a dedicated subsidiary established explicitly for securing the AKP mine stake.

In terms of resource potential, the AKP mine holds a substantial 51.4 million tons of nickel ore resources, of which 36 million tons have been verified as extractable. This considerable amount positions the mine as a valuable source for the production of batteries, estimated to be sufficient for approximately 7 million electric vehicles. LX International, through this acquisition, secures exclusive rights to acquire the entire production volume, consolidating its position in the rapidly evolving electric vehicle market.

The move to acquire a majority stake in the AKP mine underscores LX International's strategic vision and commitment to securing a sustainable and diversified supply chain for crucial resources, particularly in the realm of electric vehicle battery production. The significant investment made by the company in its Indonesian subsidiary and the subsequent acquisition exemplify a proactive approach to meeting the growing demand for nickel resources, driven by the expanding electric vehicle market.

As the electric vehicle industry continues to gain momentum globally, securing a stable supply of essential raw materials like nickel becomes paramount. The AKP mine's substantial nickel ore resources, coupled with LX International's rights to the entire production volume, position the company favorably in a competitive and dynamic market landscape.

LX International's successful acquisition of a 60% ownership stake in the AKP mine represents a strategic maneuver aimed at securing a robust position in the nickel supply chain. The mine's considerable resources and strategic location align with the company's forward-looking approach to capitalize on the burgeoning electric vehicle market. As LX International takes ownership and management control of the AKP mine, the company is poised to play a pivotal role in meeting the growing demand for nickel resources, especially in the context of electric vehicle battery production.