The Nickel Industries Ltd (ASX: NIC) share price is in focus following the announcement of a strategic partnership with Sphere Corp, including a US$2.4 billion valuation for its ENC HPAL project and the first Western offtake agreement for ENC nickel cathode.
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What did Nickel Industries report?
- Announced a deal with South Korean-listed Sphere Corp, which will acquire a 10% stake in the ENC HPAL project at a US$2.4 billion valuation.
- Sphere Corp enters an offtake agreement for ENC nickel cathode at market prices, including volumes above its 10% ownership share.
- NIC's shareholding in ENC remains unchanged at 44% despite the Sphere transaction.
- The funding completion is expected in early Q1 2026.
- ENC is targeting annual production of 72,000 tonnes of nickel metal once commissioned.
What else do investors need to know?
The partnership marks ENC's first offtake deal into Western markets, specifically targeting the fast-growing aerospace and aeronautical industries. Sphere's investment is significant, as it is a Tier 1 supplier to global aerospace and space companies—including a 10-year supply contract with SpaceX.
By qualifying ENC nickel cathode through Sphere, Nickel Industries could open up broader opportunities in North American aerospace supply chains. The company highlights that the transaction aligns with its focus on sustainable operations and reducing its carbon emissions profile.
What did Nickel Industries management say?
Nickel Industries Managing Director Justin Werner said:
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.
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 demands the highest product quality and is forecast to grow by approximately 8% CAGR to 2030.
What's next for Nickel Industries?
Nickel Industries is progressing towards the commissioning of the ENC HPAL project, which is set to diversify its product offering with nickel cathode, MHP, and cobalt sulphate. Management expects the partnership with Sphere to help position ENC as a key supplier to the aerospace sector and expand its reach into North America.
With ENC anticipated to produce around 72,000 tonnes of nickel per year, the company continues its strategic shift from stainless steel markets to serving the growing electric vehicle battery and aerospace supply chains.
Nickel Industries share price snapshot
Over the past 12 months, Nickel Industries shares have risen 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
