PT Vale Indonesia Tbk and China’s Zhejiang Huayou Cobalt Co.
today announced an agreement with global automaker Ford Motor Co.,
creating a three-party collaboration to advance more sustainable
nickel production in Indonesia and help make electric vehicle
batteries more affordable.
All three companies are making equity investments in the Pomalaa
Block High-Pressure Acid Leaching (HPAL) Project through a
definitive agreement celebrated today at a ceremony featuring
Indonesia President Joko Widodo.
The Pomalaa Block HPAL Project will process ore provided by PT
Vale Indonesia from its Pomalaa Block mine to produce MHP. This
HPAL plant will operate under PT Kolaka Nickel Indonesia in the
Pomalaa Block nickel industrial area in Kolaka, Southwest Sulawesi,
Indonesia. Subject to regulatory approval, the project could
produce up to 120 kilotons per year of contained nickel in the form
of mixed hydroxide precipitate (MHP), a lower-cost nickel product
used in EV batteries with nickel-rich cathodes.
Pomalaa Block HPAL Project early site preparations have already
started, and full construction is expected to start this year, with
commercial operations beginning in 2026. The collaboration will
deliver materials essential for the auto industry’s shift to EVs,
enhance Indonesia’s EV manufacturing industry and support Ford’s
plan to deliver a 2 million EV production run rate by the end of
2026 and further scale over time.
The three-way nickel processing project – together with a
separate supply agreement under development with Ford and Huayou
for a precursor cathode active material critical to manufacturing
lithium-ion batteries – collectively will combine with Ford’s other
sourced nickel, significantly contributing to support its EV
production targets by the end of 2026.
“This framework gives Ford direct control to source the nickel
we need – in one of the industry’s lowest-cost ways – and allows us
to ensure the nickel is mined in line with our company’s
sustainability targets, setting the right ESG standards as we
scale,” said Lisa Drake, vice president for Ford Model e EV
industrialization. “Working this way puts Ford in a position to
help make EVs more accessible for millions and to do it in a way
that helps better protect people and the planet.”
“This agreement shows it’s not just about what we mine – but how
we do it,” said Febriany Eddy, PT Vale Indonesia CEO. “We embed our
environmental, social and governance standards into everything we
do, and the result is a unique collaboration with global automaker
Ford and leading global mineral processor Huayou to jointly invest
in this project. This global co-operation is in line with
Indonesia’s vision to build a domestic EV ecosystem and makes PT
Vale an important contributor toward addressing the world’s
decarbonization challenge, with an investment that will generate
local economic benefits and ensure the optimal utilization of
Indonesia’s nickel resources.”
This agreement is the continuation of PT Vale Indonesia’s
Pomalaa Block ground-breaking last November. This block is a
National Strategic Project with an investment of up to Indonesian
rupiah 67.5 trillion and is expected to generate 12,000
construction jobs.
“Huayou is a technology-driven enterprise, and a leading
manufacturer of green, low carbon, high ESG standard new energy
battery materials. This strategic cooperation is one of the
flagship projects under the Belt and Road Initiative and Global
Maritime Fulcrum synergy, also links Indonesia nickel and cobalt
resources to EV makers via Huayou’s advanced capability and HPAL
technology, is a great business model of EV value chain and will
make a splendid contribution to the EV industry ecology development
of Indonesia. The MHP produced in this project will be processed
further into nickel sulphate, cobalt sulphate Li-ion battery
materials, and ternary PCAM,” Dr. George Fang, Senior Vice
President of Huayou, said. “The joint efforts of three parties aims
to create a very positive influence on the economy and social
development of Indonesia as well as the global EV industry and its
supply chain.”
The project was inaugurated by the Coordinating Minister of
Maritime Affairs and Investment, Luhut Binsar Pandjaitan. During
his speech, Minister Luhut said Pomalaa Block is the stepping stone
for Indonesia to be recognized as a high-quality mineral producer
for the global EV ecosystem.
“This partnership affirms PT Vale Indonesia as the premiere
supplier and champion of sustainable and low-carbon nickel,
building on our 55-year history as a key partner with a commitment
to drive lasting socioeconomic benefits for Indonesia on its path
to becoming a critical hub for the global EV value chain,” said
Deshnee Naidoo, PT Vale President Commissioner and Executive
Vice-President of Vale Energy Transition Metals.
Morgan Stanley & Co. LLC is serving as Ford’s financial
advisor in connection with this transaction, while Standard
Chartered is providing similar services for Huayou.
About Ford Motor Company
Ford Motor Company (NYSE: F) is a global company based in
Dearborn, Michigan, committed to helping build a better world,
where every person is free to move and pursue their dreams. The
company’s Ford+ plan for growth and value creation combines
existing strengths, new capabilities and always-on relationships
with customers to enrich experiences for customers and deepen their
loyalty. Ford develops and delivers innovative, must-have Ford
trucks, sport utility vehicles, commercial vans and cars and
Lincoln luxury vehicles, along with connected services. The company
does that through three customer-centered business segments: Ford
Blue, engineering iconic gas-powered and hybrid vehicles; Ford
Model e, inventing breakthrough EVs along with embedded software
that defines exceptional digital experiences for all customers; and
Ford Pro, helping commercial customers transform and expand their
businesses with vehicles and services tailored to their needs.
Additionally, Ford is pursuing mobility solutions through Ford
Next, and provides financial services through Ford Motor Credit
Company. Ford employs about 173,000 people worldwide. More
information about the company and its products and services is
available at corporate.ford.com.
About PTVI
Established on July 25, 1968, over half a century of operations
in Indonesia, PT Vale Indonesia Tbk (IDX: INCO) grew to become one
of the leading mineral mining companies, with a 55-year track
record of positively contributing to Indonesia’s sustainable
development. PT Vale produces nickel with a focus on downstream
processing, underpinned by renewable and low-carbon energy and a
belief that mining is essential to the world’s development. Visit
and get to know us more at vale.com/indonesia
About Zhejiang Huayou Cobalt Co.
Founded in 2002, Huayou is headquartered in Tongxiang, PRC., and
listed on the Shanghai Stock Exchange with a market capitalization
of around US$14 billion. Huayou is a leading manufacturer of new
energy battery materials in China, with four major business
segments, including development and refining of battery metal
resources (nickel, cobalt, lithium), production of precursors,
ternary cathode materials, and recycling of battery materials,
hereby possessing a complete industrial chain from the development
of battery metal resources to R&D and production of battery
materials. Currently, Huayou is the global tier-one manufacturer in
terms of refined cobalt product, ternary precursor and ternary
cathode. Huayou has forged strategic collaborations with Vale, LG
Chem, POSCO, CATL, Tesla, BYD, Ford, Volkswagen, BMW etc. More
information about the company and its products and services is
available at www.huayou.com
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230330005329/en/
Bernardus Irmanto, Chief Financial Officer
ptvi.investorrelation@vale.com Bayu Aji, Head of Communications
Bayu.Aji@vale.com or visit our website at www.vale.com/indonesia
Jennifer Flake, Executive Director, Ford Model e Communications
jflake1@ford.com Zhang Jiangbo, Minister of Legal Affairs, Zhejiang
Huayou Cobalt Co., Ltd zhangjb@huayou.com Qi Jianeng, Investor
Relationship Manager, qjn@huayou.com
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