PT Vale and Chinese battery metals producer GEM Co. have signed a project investment cooperation framework agreement to build a high-pressure acid leach (HPAL) facility in Indonesia’s Central Sulawesi province. The $1.42 billion facility will process nickel laterite ore from PT Vale’s local unit, producing 66,000 tonnes of mixed hydroxide precipitate (MHP) annually, a key input for the electric vehicle (EV) battery supply chain.
The project will feature advanced technology and eco-friendly practices, adhering to zero-carbon and intelligent design principles. The plant’s environmental and social governance (ESG) efforts include $40 million allocated for a research and development center aimed at knowledge transfer and local talent development. An additional $30 million will be spent on an ESG compound that will include green landscaping, employee dormitories, a domestic water supply and waste treatment systems. Another $10 million will be dedicated to community development and public facilities.
“This partnership represents our shared commitment to integrating advanced technology and eco-friendly practices, positioning Indonesia as a leader in sustainable industrial development,” said PT Vale CEO Febriany Eddy. “Through this collaboration, we are not only producing critical battery materials but also contributing to the local economy and workforce.”
Indonesia is a global leader in nickel production, supplying over half of the world’s nickel, a key metal used in EV batteries and renewable energy technologies. The Indonesian government has been actively seeking foreign investment to expand its domestic processing capabilities to add value to the country’s mineral resources.
As part of the deal, GEM will own up to a 25% stake in the project, while PT Vale will hold a 30% share. A third-party investor will be introduced to take the remaining share. Additionally, the two companies are exploring the possibility of expanding the project to include downstream plants for the production of anodes and precursors, key components in battery manufacturing.
The partnership underscores Indonesia’s growing importance in the global supply chain for EV materials and reflects the country’s broader efforts to attract investment in its mining and processing industries, positioning itself as a major player in the green energy transition.
