An agreement has been signed between Ford, PT Vale Indonesia and China’s Zhejiang Huayou Cobalt to accelerate sustainable nickel production in Indonesia with the aim of making electric vehicle batteries cheaper.
To support this target, each company is making equity investments in the Pomalaa Block High-Pressure Acid Leaching (HPAL) project through a definitive agreement. The Pomalaa Block HPAL project will be responsible for processing ore supplied by PT Vale Indonesia from the company’s Pomalaa Block mine to produce mixed hydroxide precipitate (MHP), a lower-cost nickel product used within electric vehicle batteries with nickel-rich cathodes. The plant, which will operate under PT Kolaka Nickel Indonesia in Kolaka, could produce up to 120 kilotons each year of contained nickel in the form of MHP, subject to regulatory approval.
Preparations have already begun at the production site, with the main part of production expected to begin during 2023 ahead of commercial operations beginning in 2026. The collaboration will provide the necessary materials for the automotive industry’s transition to EVs while also enhancing Indonesia’s EV manufacturing sector and bolstering Ford’s plan to deliver a two million EV production run rate by the end of 2026. The OEM aims to further scale this over time.
The nickel processing project – carried out in combination with a separate supply agreement under development between Ford and Huayou for a precursor cathode active material critical to manufacturing lithium-ion batteries – will combine with the American OEM’s other sourced nickel, supporting the company’s 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, CEO, PT Vale Indonesia. “We embed our environmental, social and governance standards into everything we do, and the result is a unique collaboration with global auto maker 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.”
The agreement is the continuation of PT Vale Indonesia’s Pomalaa Block ground-breaking in November 2022.
“This strategic cooperation is one of the flagship projects under the Belt and Road Initiative and Global Maritime Fulcrum synergy, it also links Indonesia nickel and cobalt resources to EV makers via Huayou’s advanced capability and HPAL technology,” said Dr George Fang, senior vice president of Huayou. “The MHP produced in this project will be processed further into nickel sulphate, cobalt sulphate Li-ion battery materials and ternary PCAM. 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.”
