China’s GEM and Vale Plan $1.42 Billion Indonesian Nickel Plant

Chinese battery material maker GEM and mining giant Vale plan to spend $1.42 billion building a nickel processing plant in Indonesia

China’s GEM Co Ltd and Brazil’s Vale SA plan to spend $1.42 billion building a nickel processing plant in Indonesia, the companies said on Tuesday, amid growing demand for the metal used in electric vehicle batteries.

The plant, to be located in the Indonesian Morowali Industrial Park on Sulawesi island, will have an annual capacity of 120,000 tonnes of nickel matte, they said in a statement.

GEM, which makes nickel materials for lithium-ion batteries and stainless steel, will own 51% of the joint venture, while Vale will own the rest.

The plant is expected to start production in the second half of 2024

The plant is expected to start production in the second half of 2024, they said, and will use Vale’s high-pressure acid leaching technology to process nickel ore.

The project will create about 1,000 jobs during the construction phase and 600 permanent jobs once operational, they said.

Indonesia, the world’s top nickel producer, has banned exports of nickel ore since the start of 2020 in a bid to develop its own downstream industry.

GEM and Vale said the plant will support Indonesia’s efforts to develop its nickel industry

GEM and Vale said the plant will support Indonesia’s efforts to develop its nickel industry and create jobs.

“This project represents a significant investment in Indonesia’s nickel industry and will contribute to the country’s economic development,” said Deshnee Naidoo, Vale’s executive vice president for base metals.

“The plant will also support GEM’s growth strategy in the global battery materials market,” said Xu Kaihua, GEM’s chairman.

Indonesia has attracted investment from a number of companies looking to develop its nickel industry, including Tsingshan Holding Group, LG Energy Solution and Hyundai Motor Co.