Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
PT Vale and Chinese battery metal producer GEM Co. have signed a project investment cooperation framework agreement to establish a high-pressure acid leach (HPAL) facility in Indonesia’s central Sulawesi province.
The $1.42 billion plant will process nickel laterite ore from the Vale unit into 66,000 tonnes of mixed hydroxide precipitate annually.
According to GEM, the plant will adhere to zero-carbon and intelligent design principles.
The investment includes $40 million for a research and development center for knowledge transfer and local talent development, $30 million for an ESG compound featuring green landscaping, employee dormitories, domestic water supply and waste treatment, and $10 million for community development and public facilities.
“By integrating advanced technology, eco-friendly practices, and a commitment to net-zero production, we are shaping a future where Indonesia is recognized as a leader in sustainable industrial development,” PT Vale CEO Febriany Eddy said in a news release.
Indonesia accounts for more than half of global nickel production and has been seeking foreign investment in its processing industry.
GEM will own up to a 25% stake in the project, the Vale unit will hold 30%, and a third party will be introduced for the remaining share.
GEM and PT Vale will also consider building downstream anode and precursor plants.
