Posted on 13 Nov 2024
Shenzhen-listed battery material firm GEM announced that it signed a project investment framework agreement with Vale Indonesia on 10 November, Kallanish Power Materials learns.
The two parties plan to jointly construct a green high-pressure acid leach (HPAL) factory in Central Sulawesi, Indonesia. The plant will process part of the nickel ore from a mining area of Vale Indonesia into mixed hydroxide precipitation products (MHP) containing nickel and cobalt that meet market standard specifications.
Additionally, the duo plans to consider the development of cathode and precursor plants to potentially build a “world-class green nickel resource industrial park” with local Indonesian technology and local talents. This is aimed at meeting the global demand for “green nickel resources,” they add.
The production capacity is set at 66,000 tonnes/year of nickel-containing MHP. The plan is to satisfy demand from a global market with different standards. Total investment in the factory and supporting facilities will not exceed $1.42 billion.
A project company will be established, with GEM and its potential third-party partner holding a 70% stake. Vale Indonesia, a subsidiary of Brazilian miner Vale, will hold the remaining 30%. GEM’s direct share will not exceed 25%.
Construction is set to be completed within 16 months after receiving related permits, but the detailed schedule is yet to be decided based on the investment approval progress.
Source:Kallanish Power Materials
