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Nickel Industries shares: US$169m TMI HPAL investment boost

Nickel Industries announces a US$169m investment for a 17.5% stake in the TMI HPAL project, boosting its exposure to the EV battery sector.

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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
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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.

A man checks his phone next to an electric vehicle charging station with his electric vehicle parked in the charging bay.

Image source: Getty Images

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.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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