Lygend Resources & Technology Achieves Full-scale Operations at Obi Island RKEF Project Phase II

Key Highlights for Investors

• Commercial operations commenced for all production lines of KPS project (Phase II of RKEF) in May 2026.
• KPS project adds 12 production lines with a designed annual capacity of 185,000 metal tons of ferronickel.
• Obi Island RKEF project now fully operational, reaching a total production capacity of 400,000 metal tons of nickel per annum.
• Significant enhancement in economies of scale, market share, and potential profitability for Lygend Resources & Technology.

In-depth Report

Lygend Resources & Technology Co., Ltd. (HKEX: 2245) has announced a major operational milestone: as of May 2026, all production lines of the KPS project, which constitutes Phase II of the Rotary Kiln-Electric Furnace (RKEF) project on Obi Island, Indonesia, have successfully commenced commercial operations.

The RKEF project, a joint investment with an Indonesian partner, was designed in two phases. The newly commissioned Phase II (KPS project) adds 12 production lines, collectively offering a designed production capacity of 185,000 metal tons of ferronickel per year. With this achievement, the entire Obi Island project is now fully operational, and Lygend Resources & Technology has reached a total large-scale production capacity of 400,000 metal tons of nickel per annum.

Implications for Shareholders

This development is highly significant and is likely to be price-sensitive, as it marks the formal realization of Lygend’s large-scale production plans. The full operation of all production lines is anticipated to:

• Increase the company’s market share within the nickel products industry.
• Enhance the company’s economies of scale, which is expected to facilitate cost reductions and operational efficiency gains.
• Provide a stronger foundation for resource allocation optimization, supporting future growth in profitability and industry influence.
• Position Lygend Resources & Technology as a major player in the rapidly growing nickel market, which is closely tied to battery production and the broader EV/green energy sector.

As operations are reported to be proceeding in an orderly manner as planned, the company foresees a positive outlook for further cost optimization and efficiency improvements. These factors, together with the expanded production capacity and market share, could drive significant growth in company earnings and potentially enhance shareholder value.

Cautionary Note

Shareholders and potential investors are advised to exercise caution when dealing in the securities of the Company, as ongoing developments and operational milestones such as these may result in increased share price volatility.

Corporate Information

The Board of Directors includes Chairman and Executive Director Mr. CAI Jianyong, along with other executive, non-executive, and independent non-executive directors, as well as an employee representative director.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research or consult professional advisors before making any investment decisions.