Eramet and BASF Cancel $2.6 Billion Nickel-Cobalt Refining Project in Indonesia

French mining company Eramet and German chemical giant BASF have announced the cancellation of their planned $2.6 billion joint investment in a nickel-cobalt refining complex in Weda Bay, Indonesia. The decision was made after a thorough evaluation and discussions about the project's execution strategy.

Eramet stated that it would continue to explore potential investments in the nickel electric vehicle battery value chain in Indonesia and will keep the market updated on future developments.

An official from Indonesia's Coordinating Ministry of Maritime and Investment Affairs, Septian Hario Seto, mentioned that the cancellation might be due to the existing and upcoming high-pressure acid leach (HPAL) facilities in the country, making it easier to obtain mixed hydroxide precipitate (MHP) without the need for significant capital expenditure on new facilities.

Indonesia has attracted several investments from Chinese companies and their local partners in HPAL facilities as the country seeks to develop a homegrown electric vehicle industry.

In January 2023, Indonesian officials indicated that Eramet and BASF were close to finalizing their investment in nickel production for electric vehicle batteries, utilizing resources from Eramet's Weda Bay mine. Eramet had confirmed that negotiations were ongoing but emphasized that the project was contingent on a final investment decision.