“The total production capacity in the cooperation reaches 120,000 metric tons of nickel content per year in the form of mixed hydroxide precipitate.”

Jakarta (Indonesia Window) – PT Vale Indonesia Tbk has signed a non-binding memorandum of cooperation with Huayou China and world car manufacturer Ford Motor to process nickel ore in the Pomalaa Block located in Kolaka district, Southeast Sulawesi province.

The cooperation refers to the agreement framework for the development of the High-Pressure Acid Leaching (HPAL) processing facility in the Pomalaa Block that was agreed between Vale and Huayou in April 2022, CEO and President Director of Vale Febriany Eddy said in a written statement here on Friday.

The total production capacity in the cooperation reaches 120,000 metric tons of nickel content per year in the form of mixed hydroxide precipitate, she said.

According to her, Ford's participation in the partnership further emphasizes Indonesia's very important position in the world electric car industry, because it is supported by the people’s support and natural resources.

Meanwhile, Vale's Executive Vice President of Base Metals as President Commissioner of Vale Deshnee Naidoo said the company has a track record of operating for decades in Indonesia in producing nickel safely and sustainably.

"We look forward to working with other partners who are in line and always prioritize the sustainability aspect in a new generation of development projects designed to have minimal impact on the environment and give social and economic benefits at the local and national levels in the future," she said.

Ford sees the three-party partnership as a creative way to ensure that the nickel needs of Ford and millions of Ford electric vehicle customers can be met.

"This is also in line with what Ford wants to achieve in every process, which is to remain committed to the environmental, social, and governance aspects now and in the future," said Lisa Drake, vice president of Ford Model EV Industrialization.

Meanwhile, Huayou Executive Vice Chairman George Fang said that his company as one of the global Li-ion battery material producers has made consistent efforts in carrying out the entire industry scope of nickel and cobalt to become cathode battery materials with very low carbon emissions.

"The partnership with Ford and Vale will not only ensure a stable and sustainable supply for customers, but will also have a positive impact on the development of the electric vehicle industry and the Indonesian economy," Fang said.

The completion of the construction of the HPAL facility and the start of operations are expected to be achieved in 2025.

Reporting by Indonesia Window