Cooperating With Huayou And Huali, Vale Indonesia Is Ready To Boost Production Of EV Battery Raw Materials

PT Vale Indonesia Tbk (INCO) signed a definitive Cooperation Agreement with Zhejiang Huayou Cobalt Co. Ltd (Huayou) and PT Huali Nickel Indonesia (Huali) for the construction of nickel processing facilities with High-Pressure Acid Leaching (HPAL) technology.

This collaboration targets the production of 60,000 tons of nickel and 5,000 tons of cobalt per year in the form of Mixed Hydroxide Precipitate (MHP) products that can be further processed into electric vehicle batteries.

The project will process a limousine-type nickel ore from the Sorowako block, while the HPAL plant will be located in Malili, East Luwu, South Sulawesi.

CEO of PT Vale Indonesia Febriany Eddy explained that this is in line with Indonesia's vision to develop a domestic electric vehicle ecosystem.

Furthermore, Eddy said this collaboration also made PT Vale the main contributor in responding to the challenges of world decarbonization.

"With investment that is able to bring improvement to the local economy, and ensure optimal empowerment for Indonesia's nickel resources. The low commitment of carbon and our partners, along with the consistency of PT Vale's sustainable mining practice, will make this project world-class," he said in an official statement, Friday, August 25.

President Commissioner of PT Vale Indonesia Desnee Naidoo said the cooperation agreement was a strategic achievement for PT Vale, as part of the implementation of an investment program worth US$8.6 million in Indonesia.

"With more than half a century operating in Indonesia, PT Vale has a unique position and is committed to supporting Indonesia's acceleration of Indonesia's targets for more advanced downstreaming, as well as to present an attractive supply chain of electric vehicles (EVs) from mineral mining to battery and vehicle production," he said.

Meanwhile, Huayou Chairman Chen Xuehua said that cooperation to build an equal future for the lithium industry is a development concept whose commitment to implementation is firmly held by Huayou.

He said, this collaboration is another perfect combination of Huayou Cobalt's world-class leading practice, for green and low-carbon HPAL-based processing technology, Indonesia's resource advantage and PT Vale's sustainable mining consistency.

"Through this collaboration, Huayou will carry out low-carbon, green, and sustainable resource development, implement the ESG concept in depth, to increase the strength of the new energy industry, as well as contribute to Indonesia's social and economic development, as well as for global EV supply industries and chains," he said.