In a recent announcement from Jakarta, PT Vale Indonesia is set to potentially invest in a new high-pressure acid leaching (HPAL) plant located on Sulawesi island. The project, which carries an estimated cost of 30 trillion rupiah (approximately $1.91 billion), aims to enhance the production of mixed hydroxide precipitate (MHP). MHP is a crucial component in the manufacturing of electric vehicle batteries, signaling a significant move towards supporting the growing electric vehicle industry.
Named “SOA HPAL”, this facility would mark the third HPAL plant initiative by Vale Indonesia on the island, complementing its ongoing projects in Pomalaa and Sorowako. These efforts are part of the company’s broader strategy to process nickel ore into MHP, underscoring Indonesia’s pivotal role in the global supply chain for electric vehicle production materials.
Although Vale Indonesia has not commented on the announcement, the investment ministry highlighted the plant’s projected annual output capacity. The SOA HPAL plant is expected to produce 60,000 metric tons of nickel in MHP annually. This development comes as Vale Indonesia wraps up its final exploration phase, with plans to collaborate with leading automakers to further solidify its position within the industry.
The company’s existing HPAL projects in Pomalaa and Sorowako are undertaken in partnership with Zhejiang Huayou Cobalt, and the $4.5 billion Pomalaa plant sees involvement from the U.S. carmaker Ford. This network of collaborations showcases the integrated efforts to meet the demand for essential battery materials.
In addition, the Indonesian state mining company MIND ID has recently increased its stake in Vale Indonesia, acquiring a 14% share from Vale Canada and Sumitomo Metal Mining. This move positions MIND ID as a top shareholder, reflecting the strategic importance of nickel mining and processing for Indonesia’s economic landscape. 
