Posted on 05 May 2023
US Senator Marco Rubio (R-Florida) continues his attacks on Ford Motor Co’s ties to China, demanding that the Biden administration investigate the mining deal among Ford, Zhejiang Huayou Cobalt Co and PT Vale Indonesia, Kallanish reports.
The joint venture in Indonesia including a mine and a $4.5 billion nickel processing plant needs to be investigated because of the impacts on US national security and economic competitiveness, Rubio says. His letters went to the US Secretary of State, Treasury and Commerce, Attorney General, chairman of the Securities and Exchange Commission and Customs and Border Protection.
Rubio’s issue is that Zhejiang Huayou is based in China and is, he says, under the control of the China Communist Party. Ford has a minority stake in the project and that puts the “company at the mercy of the Chinese Communist Party,” claims Rubio. China is working globally to control critical minerals, he says.
Last year, Ford had announced that it would partner with Huayou and Vale to invest in the Pomalaa Block High-Pressure Acid Leaching Project to process ore provided by Vale from its Pomalaa Block mine to produce mixed hydroxide precipitate on the island of Sulawesi. The goal of the project is to increase Indonesian nickel production and to drive down prices.
Construction is expected to begin later this year with commercial production beginning in 2026. The mine and plant are expected to produce 120,000 tonnes/year of contained nickel.
Last March, Rubio introduced legislation aimed at Ford’s deal to use technology from China-based battery company CATL as part of its plan to build a $3.5 billion battery plant in Michigan. He has already asked the Biden administration to investigate that deal. He also wants to block tax credits for EV batteries using Chinese technologies to stop Chinese companies from benefitting.
Source:Kallanish
