Vale Teams With Chinas Gem For Planned 14b Indonesian Nickel Plant

The latest and trending news from around the world.

Vale teams with China's GEM for planned $1.4B Indonesian nickel plant (NYSE:VALE)
Vale teams with China's GEM for planned $1.4B Indonesian nickel plant (NYSE:VALE) from

Vale teams with China's GEM for planned $1.4B Indonesian nickel plant

Summary

China's GEM Co Ltd and Brazil's Vale SA are investing $1.4 billion in a nickel processing plant in Indonesia, as the world's second-largest nickel producer seeks to increase output in response to increased demand for the metal used in electric vehicle batteries.

Body

Vale, which owns and operates the Goro Nickel mine in New Caledonia, is the world's second largest nickel producer. GEM is a Chinese company that specializes in the production of nickel and cobalt.

The two companies have signed a memorandum of understanding (MOU) to develop a nickel processing plant in Indonesia. The plant will have an annual capacity of 60,000 tonnes of nickel matte, which is an intermediate product used in the production of stainless steel.

The investment is expected to create 2,000 jobs in Indonesia. It will also help to boost the country's nickel industry, which is currently dominated by Chinese companies.

Indonesia's nickel industry

Indonesia is the world's largest producer of nickel ore. The country has been investing heavily in its nickel industry in recent years, as it seeks to increase its share of the global market for nickel products.

The Indonesian government has set a target of producing 1 million tonnes of nickel per year by 2024. The country is also planning to build a number of new nickel smelters and refineries.

Nickel's role in electric vehicles

Nickel is a key component in the production of batteries for electric vehicles. The demand for nickel is expected to increase significantly in the coming years, as the world transitions to electric vehicles.

Indonesia is well-positioned to benefit from this growing demand for nickel. The country has abundant nickel resources and is investing heavily in its nickel industry.

Conclusion

The investment by Vale and GEM in a nickel processing plant in Indonesia is a significant development for the country's nickel industry. It will help to boost Indonesia's production of nickel and create jobs in the country.