The Nickel Industries Ltd (ASX: NIC) share price is in focus after the company announced a US$169 million investment for a 17.5% stake in the TMI HPAL project, with payment due in November 2026. The deal includes a construction guarantee capping costs and secures a clear path to new EV battery supply chain production.
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What did Nickel Industries report?
- Agreed to acquire a 17.5% interest in the PT Teluk Metal Industry (TMI) HPAL project for US$169 million
- Payment for the stake due on 26 November 2026
- Construction guarantee limits acquisition cost to US$169 million, with delivery of nameplate capacity by September 2027
- TMI nameplate production capacity of approximately 38,640 Ni tonnes per year, with NIC's attributable share around 6,775 Ni tonnes
- To be funded from existing cash reserves and operations, with debt funding backup arranged if needed
What else do investors need to know?
The newly announced partnership sees Nickel Industries' 17.5% interest sit alongside a 72.5% interest held by a Korean-Japanese consortium and a 10% Singapore partner, establishing strong global links. The company also benefits from a comprehensive construction guarantee, providing cost, timeline, and production certainty.
Strategically, Nickel Industries' Sampala Project will be the exclusive ore supplier to TMI, ensuring reliable input for future processing. TMI's HPAL economics are already proven after earlier portfolio successes, with the HNC HPAL asset achieving an adjusted EBITDA margin of US$9,996 per tonne nickel in Q1 2026.
What's next for Nickel Industries?
With the TMI investment, Nickel Industries is set to reinforce its position as a significant player in the global EV battery supply chain. Commissioning of TMI is expected to start in mid-2027, with nameplate production aimed for September 2027.
The company plans to fund the transaction using cash reserves and operational cash flow, with additional debt funding available if required. Strategic supply from the Sampala Project should underpin long-term value and support sustainable growth as demand for battery-grade nickel rises.
Nickel Industries share price snapshot
Over the past 12 months, Nickel Industries shares have risen 30%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 3% over the same period.
