On November 10, PT Vale Indonesia Tbk (PTVI) and China’s battery metal producer GEM signed a project investment cooperation framework agreement to build a nickel processing and refining facility using high-pressure acid leaching (HPAL) technology in the central Sulawesi province of Indonesia.

The project will cost US$1.42 billion. The facility will process nickel laterite ore from the Vale unit into mixed hydroxide precipitate (MHP), a key material for energy storage system (ESS) batteries. The annual production capacity will be around 60,000 tons.

The investment includes US$40 million for knowledge transfer and local talent development in Indonesia, US$30 million for environmental, social, and governance (ESG) initiatives, covering green landscaping, employee housing, domestic water supply, and waste management, and US$10 million for community and public facility development.

In addition, the two companies are also considering setting up downstream anode and precursor factories.