Ford Motor Co. and PT Vale Indonesia and China's Zhejiang Huayou Cobalt signed an investment deal to develop a $4.5 billion nickel processing plant in Indonesia.
It is anticipated that the high-pressure acid leaching in Pomalaa, where Vale has a nickel mine, will yield 120,000 tonnes of mixed hydroxide precipitate annually, which is a substance recovered from nickel ore and used in batteries for electric vehicles.
With plans to someday make batteries and electric vehicles, Indonesia, which has the largest nickel reserves in the world, has been working to build downstream businesses for the metal.
The plant's development was started by Vale and Huayou in November, and commercial operation is anticipated to begin in 2026.
According to Febriany Eddy, CEO of Vale Indonesia, the contract is special since it involves an upstream nickel industry for the American automobile.
She stated Vale has a 30 percent stake in the project with the remainder being controlled by Ford and Huayou.
“Ford can help ensure that the nickel that we use in electric vehicle batteries is mined, produced within the same ESG standards as part of our business around the world,” Christopher Smith, Ford’s chief government affairs officer, said at the signing.
Ford's initial financial commitment to the nation of Southeast Asia.
Since 2020, Indonesia's government has prohibited the export of raw nickel ore in order to assure supply for both current and future investors.
Global EV manufacturers like Tesla and China's BYD Group are currently being courted by the government to invest in the nation.