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Alexander Machkevitch: ERG plans for the construction of a battery plant

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(© Sean K –

Alexander Machkevitch, chairman of the Board of Directors of Eurasian Natural Resources Corporation (ERG), announced the possibility of building a plant for the production of materials for batteries.

ERG unites the largest enterprises of Kazakhstan in the extraction and processing of ore and minerals. This allows Alexander Machkevitch and partners to occupy leading positions in the country’s mining and metallurgical business. The approach of Alexander Machkevitch to the organization of ERG production is based on a continuous increase in efficiency and financial stability, ensured by a constant increase in profits. This is largely achieved through diversification of production when ERG expands its presence in new areas of business.

And since ERG’s market position is quite stable, Alexander Machkevitch is considering the potential of building a plant for the production of precursors for lithium-ion batteries. At the same time, Metalkol RTR has already been appointed as the main supplier of cobalt hydroxide, which is absolutely necessary for this production.

The convenience of the production chain lies in the fact that it is also an ERG company located in the Congo, so supply transparency is ensured. The fact that the two ERG enterprises will be connected by the supply chain indicates a carefully developed strategy for the vertical integration of the new business, which was implemented by Alexander Machkevitch. The production of lithium batteries, in turn, is a necessary part of the production of electric vehicles.

Alexander Machkevitch: production of electric vehicles

Eurasian Resources Group has announced that it is analyzing the possibility of building a plant for the production of nickel-cobalt-manganese (NCM) precursors for batteries that are needed in the production of electric vehicles. Also, they already attracted additional partners for financing the enterprise.

Currently, Alexander Machkevitch is studying the technical solutions offered by partners, two world-renowned engineering companies – the Chinese company BGRIMM Technology Group and the Finnish Outotec. These companies offer several options for the ratio of manganese, nickel, and cobalt, focusing primarily on demand.

Alexander Machkevitch expects to build a plant in two consecutive stages. First, a plant line will be built capable of producing 90,000 precursors per year. The second stage, involving the expansion of production, will depend on the market – if demand for the products rises, an increase in capacity can be considered.

The main factor here is that the production of lithium batteries for electric vehicles is part of the concept of a green economy, which is becoming the dominant vision of the world’s largest businessmen and corporations. Alexander Machkevitch is already participating in this process, supplying cobalt as a necessary raw material for the production of batteries.

Alexander Machkevitch: Eurasian Group as the largest supplier

In this project, Alexander Machkevitch uses the classic strategy of a diversified portfolio: the construction of enterprises with low costs and potential for growth, corresponding to the needs of the market for raw materials.

In accordance with this, the Eurasian Group assumes an important role as the main supplier of cobalt for electric vehicles in Europe, North America, South Korea, and Japan. And the main enterprise that supplies cobalt as part of the Eurasian Group is Metalkol RTR.

As for nickel sulfate – a substance also necessary for the production of precursors for batteries, the Eurasian Group has not yet decided whether to use the product of third-party suppliers or to produce it on its own.

Story by Aleks Souschuk

augusta free press
augusta free press
augusta free press

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