Kiki Barki, a coal mining mogul whose fortune skyrocketed through Harum Energy, is now pivoting his company’s strategic focus towards nickel—a key metal driving the future of electric vehicles (EVs). With global EV sales witnessing a 24% growth in the first ten months of 2024, primarily led by China, Harum Energy is positioning itself to capitalize on this booming sector.

Nickel, a vital component in lithium-ion batteries, contributed only 11% of Harum’s 2023 revenue of $926 million. However, industry projections suggest a sharp shift in the company’s revenue breakdown, with nickel potentially accounting for more than 80% of the total by 2027, according to a report from financial services firm Nomura. The company’s ambitious plans are reflected in its recent surge in investments within the nickel sector.

In January 2024, Harum increased its stake in the Indonesian nickel smelter, Westrong Metal Industry, acquiring nearly 81% of the company for $215 million. Later, in April, its subsidiary, Tanito Harum Nickel (THN), made headlines by purchasing 51% of Blue Sparking Energy for $206 million. This subsidiary is developing a refining facility expected to produce 67,000 tons of nickel annually by 2026, a significant step towards scaling Harum's nickel production.

The company’s most recent strategic move came in September when Harum entered a partnership with the Chinese metals giant, Eternal Tsingshan Group, led by billionaire Xiang Guangda. Tsingshan acquired 49% of Harum’s nickel units under THN for $412 million, marking a significant collaboration aimed at strengthening Harum’s presence in the global nickel market. This partnership not only accelerates Harum’s expansion but also opens doors for future asset acquisitions, ensuring the company’s long-term competitiveness in the rapidly evolving EV market.

Harum Energy’s bold shift from coal to nickel represents a crucial diversification in response to the surging demand for electric vehicle batteries. As the world pivots towards cleaner energy solutions, Harum Energy is positioning itself at the forefront of the critical materials needed for the transition. The future of the company now looks set to be shaped by the growing role of nickel in the electrification of transportation, positioning Kiki Barki’s Harum Energy as a key player in the global EV supply chain.