CNGR Advanced Material explores acquisition of 80% stake in Gunbuster Nickel Industry
Chinese lithium battery materials producer CNGR Advanced Material is in preliminary discussions to acquire an 80% stake in PT Gunbuster Nickel Industry from Jiangsu Delong, potentially positioning itself as a major competitor in Indonesia's nickel sector.
CNGR Explores Major Indonesian Nickel Acquisition
CNGR Advanced Material Co., a Chinese producer of lithium battery cathode materials listed on the Shenzhen Stock Exchange since December 2020, is exploring the acquisition of an 80% stake in PT Gunbuster Nickel Industry (GNI) from Jiangsu Delong, according to a Bloomberg report published Wednesday.
The potential acquisition could position CNGR as a significant player in Indonesia's nickel industry, where it would compete with established giants such as Tsingshan Holding Group, the world's largest nickel producer accounting for approximately 20% of the global market. Tsingshan established the Indonesia Morowali Industrial Park in Sulawesi in October 2013, which has become the largest nickel processing site in the country with 15 operational smelters.
A source familiar with the preliminary discussions indicated the acquisition could proceed after GNI completes its restructuring early next year. However, the source emphasized that initial talks do not guarantee a final agreement will be reached. GNI declined to comment on the report.
Financial Challenges Force Smelter Closures
The development comes amid significant financial challenges for GNI and its parent company. In August 2026, GNI temporarily closed two of its three nickel smelters in North Morowali, Central Sulawesi, resulting in the termination of approximately 1,900 workers. The closure followed a debt payment suspension lawsuit that severely limited the company's financial capacity to meet operational needs.
GNI was inaugurated by then-Indonesian President Joko Widodo in December 2021 as one of Indonesia's flagship National Strategic Projects for downstream nickel processing, representing an investment of approximately USD 2.7 billion. The facility had targeted annual production capacity of 1.8 million to 1.9 million tonnes of ferronickel, or nickel pig iron (NPI), requiring an estimated supply of 21.6 million wet metric tonnes of nickel ore annually.
Complex Ownership Restructuring
The financial distress affecting GNI reflects broader challenges facing its parent company, Jiangsu Delong Nickel Industry, which holds significant ownership stakes in three major Indonesian nickel refining companies that together account for more than 38% of Indonesia's nickel refining capacity as of 2023. Following court-approved bankruptcy restructuring in March 2026, Zhejiang Materials Development Co., Ltd. (Zheshang Zhongtuo), a Chinese state-owned enterprise, acquired a 75% stake in Jiangsu Delong's 99.84% indirect ownership of GNI. In October 2026, Xiamen Gangyu Investment, a subsidiary of Xiamen Xiangyu Group, assumed control of Jiangsu Delong's domestic stainless steel business.
Chinese Dominance in Indonesian Nickel
The potential acquisition occurs within a market environment dominated by Chinese companies, which control approximately 75% of Indonesia's nickel smelting capacity as of 2023. Tsingshan Holding Group and Jiangsu Delong Nickel Industry together account for more than 70% of Indonesia's refining capacity. Indonesia itself is the world's largest nickel producer, responsible for approximately 60-65% of global nickel output, with production concentrated in Sulawesi and Halmahera islands.
The Indonesian government has responded to market challenges by cutting the nickel ore production quota for 2026 to 260-270 million wet metric tonnes, down from 320-379 million tonnes in 2025, in an effort to address oversupply and support prices.
CNGR's Previous Indonesian Entry
CNGR previously entered the Indonesian market through a backdoor listing in late 2024, acquiring nearly 50% of PT Abadi Nusantara Hijau Tbk (PACK) through PT Eco Energi Perkasa. By the end of September 2026, Eco Energi Perkasa's stake had declined to 38.5%, while Samsudin Andi Arsyad, also known as Haji Isam, held 20.04% and public investors owned 41.32%. CNGR chief executive Den Weiming is listed as the ultimate beneficial owner of PACK shares. Over the past year, PACK's share price has risen more than 200% following CNGR's entry.
Despite the closure of two smelters, GNI management stated the company would continue operating in Indonesia on a limited basis with one remaining operational facility.