PT Vale and China’s GEM partner for $1.4 billion Indonesian nickel plant

Indonesia has signed an agreement with Chinese company GEM Co Ltd. and Brazilian miner Vale SA to build a $1.4 billion nickel processing plant in Indonesia.

The plant will be built in the eastern Indonesian province of Central Sulawesi and is expected to start operations in 2025. The plant will process nickel ore into nickel matte, which is used to make stainless steel.

The Indonesian government has been promoting investment in the nickel industry as it looks to develop a domestic electric vehicle industry. Nickel is a key component in batteries used in electric vehicles.

The agreement was signed by Indonesian Investment Minister Bahlil Lahadalia, GEM President Peng Bo, and Vale President Deshnee Naidoo.

“This is a major investment in Indonesia’s nickel industry and will help us to develop our domestic electric vehicle industry,” Lahadalia said.

“We are committed to working with our partners to ensure that this project is a success,” Peng said.

“This project is a testament to the strong partnership between Indonesia and China,” Naidoo said.

The project is expected to create 4,000 jobs during construction and 1,500 jobs once operational.

The Indonesian government has been working to attract investment in the nickel industry in order to develop a domestic electric vehicle industry. Nickel is a key component in batteries used in electric vehicles.

The agreement between Indonesia, GEM, and Vale is a significant step towards developing Indonesia’s nickel industry and its domestic electric vehicle industry.