Bahlil Meets Jokowi to Talk Vale's US$4.5bn Smelter Project with Ford, Huayou
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1 April 2023 02:07 WIB
TEMPO.CO, Jakarta - US automaker Ford Motor and China's battery manufacturer Zhejiang Huayou Cobalt have agreed to cooperate in investing in a nickel smelter project with PT Vale Indonesia Tbk (IDX: INCO). Indonesia's Investment Minister Bahlil Lahadalia met with President Joko"Jokowi" Widodo on Friday, March 31, 2023, to talk about the project, which he said has an investment value of US$4.5 billion.
The two companies agreed to partner with Vale to work on a nickel smelter project with High-Pressure Acid Leaching (HPAL) technology in Sorowako, East Luwu, South Sulawesi.
Speaking to reporters after President Joko Widodo's meeting at the State Palace on Friday, March 31m Bahlil said that the smelters will be part of the electric vehicle battery ecosystem. The project, he said, starts this year.
He added that Ford, Huayou and Vale are also considering producing battery precursors.
The investment agreement was announced on Thursday, March 30, 2023, during Jokowi's visit to Vale's factory in Sulawesi. The president said he was happy that Ford and Huayou were involved in the project with Vale, and said that the companies were attracted by Indonesia's abundant nickel reserves—25 percent of the planet's total.
Meanwhile, Vale Indonesia predicts that the nickel smelter investment has a value of some US$1.8 billion or around Rp26.64 trillion. In this project, Vale and Huayou share an ownership of 30 percent to 70 percent. The smelter facility is estimated to be ready in three years, sometime between late 2025 and early 2026.
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