Azure Corporation announced on October 14, 2025 that its board has approved a $20 million investment to acquire a 5.95% stake in PT Indonesia Qingmei Energy Materials through a capital increase, according to a company filing.
The transaction involves multiple parties including GEM (Jiangsu) Cobalt Industry Co., Ltd., New Horizon International Holding Limited, and Eternal Oasis Hong Kong Investment Limited. GEM (Jiangsu) Cobalt Industry, a wholly-owned subsidiary of Shenzhen-listed GEM Co. Ltd., will see its stake diluted from 99.10% to 29.32% following the capital expansion.
Why Indonesia?
The PT Indonesia Qingmei Energy Materials project targets annual production of 50,000 tons of high-nickel ternary precursor materials. Nickel serves as a critical element for ternary power batteries, particularly essential for new energy vehicles with ranges exceeding 800 kilometres. Indonesia hosts the world’s richest lateritic nickel ore resources, making it a “strategic stronghold” for GEM.
As early as 2022, GEM successfully broke through bottlenecks in High-Pressure Acid Leach (HPAL) technology and equipment, solving the world-class challenge of refining low-grade lateritic nickel ore with nickel content below 1.2%. The company has established independent technological systems, talent networks, and equipment supply chains. GEM utilizes innovative technology to mine nickel laterite ore in Indonesia, effectively harnessing low-grade nickel ore to achieve the co-extraction of nickel, cobalt, and manganese, significantly enhancing mining efficiency.
Azure Lithium Core stated that GEM serves as a key supplier of its lithium battery raw materials, with both parties maintaining strong cooperative relations. This investment in the Indonesian project will help deepen their partnership and ensure diversified raw material supply for Azure’s overseas production capacity.
The company clarified that this represents a minority investment and won’t involve consolidation of GEM’s financials, having no material impact on its current fiscal year performance.
Source: WeChat Official Account——鑫椤锂电
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