Nickel Industries cements leadership in ENC, welcomes Sphere as strategic partner

Nickel Industries cements its leadership in the ENC project, welcomes Sphere as partner, and secures a 15-year Sampala ore supply deal.

Laura Stewart

Author bio Laura Stewart is a Finance Editor at The Motley Fool, where she covers Australian and international equity markets. She joined the company in 2022, following a career transition from legal advisory work in Southeast Asia into the investment industry. Prior to her current editorial role, Laura spent three years as an Equity Analyst and Writer, producing investment research across the ASX, NYSE, and NASDAQ. Her coverage included small-cap growth companies, thematic investment ideas, and high-quality U.S.-listed businesses. Laura holds a Master of Applied Finance and brings additional expertise in accounting, taxation, and estate and wealth planning from her postgraduate studies. She also has a background in law and communications, which supports her analytical and reporting work in financial markets. Outside of work, she enjoys spending time in the Adelaide Hills with her flock of sheep. Education Laura holds a Bachelor of Laws, a Bachelor of Communication (Journalism), and a Bachelor of Commerce with majors in Accounting and Corporate Finance. In 2025, she completed a Master of Applied Finance at the University of Adelaide, receiving postgraduate awards in Accounting Concepts & Methods, Ethical Principles in Accounting & Finance, Real Estate Valuation & Investment, and Tax, Estate & Wealth Planning. Social media LinkedIn FYI – I am taking a break from social media at the moment, so this account isn’t active at the moment, but I will let you know when I rejoin. Favorite investment quote "Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't... pays it." — Albert Einstein

Published January 30, 10:15 am AEDT

The Nickel Industries Ltd (ASX: NIC) share price is in focus today after the company announced the completion of Sphere's 10% acquisition in the ENC project, valuing the project at US$2.4 billion, and a streamlined deal to become ENC's largest shareholder.

Two CEOs shaking hands on a deal. — Image source: Getty Images

What did Nickel Industries report?

Sphere acquires a 10% interest in the ENC project at a US$2.4 billion valuation
Nickel Industries to increase ENC holding from 44% to 46%, becoming the largest shareholder
The final US$46 million payment for an extra 2% stake replaces US$253 million previously scheduled, reducing future cash outflows
Secured an exclusive 15-year, 14 million wmt/year limonite ore supply MOU for the Sampala Project
Nickel Industries provides credit support to Sphere's US$210 million acquisition loan

What else do investors need to know?

Nickel Industries' agreement with Shanghai Decent not only builds its stake in ENC, but also consolidates its leadership in the project, reducing payment uncertainty and bolstering its balance sheet. The restructuring slashes expected ENC payment obligations by US$207 million while capping future outflows, giving investors more clarity.

By backing Sphere's loan for its ENC stake, Nickel Industries also secures priority rights over those shares, should Sphere ever default. This protects NIC's long-term strategic position and could even allow it to acquire more of ENC on favourable terms in such a scenario.

What did Nickel Industries management say?

Managing Director Justin Werner said:

We are pleased to welcome Sphere as a strategic partner in ENC. Sphere's position as a key accredited supplier to SpaceX underscores the importance of quality, traceability and reliability in advanced and high‑performance end‑markets, and its decision to invest in ENC is a strong endorsement of the project and the quality of ENC's nickel cathode.

The reduced ENC acquisition percentage reduces payment obligations to our largest shareholder, reinforcing the strength of our balance sheet and enhances the Company's financial flexibility.

Finally, the exclusive 15 year, 14 million wmt per annum ore supply MOU reinforces the value of the Sampala Project. Consistent with our integrated business model, the ore supply MOU positions the Company well for any future downstream growth opportunities.

What's next for Nickel Industries?

As ENC nears commissioning, Nickel Industries aims to further its transition into battery-grade nickel and cobalt products used in electric vehicles. The Sampala ore supply MOU, with its innovative transport solution, could unlock extra value and efficiency in supply to the adjacent HPAL project.

The reduced acquisition costs and enhanced ownership position should also help Nickel Industries manage funding more effectively, strengthening its growth platform as it targets downstream opportunities beyond stainless steel.

Nickel Industries share price snapshot

Over the past 12 months, Nickel Industries shares have risen 24%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

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