Nickel Industries Courts EV Players for Indonesia Plant Stake
Invitations to Industry Leaders
Nickel Industries is actively inviting major electric vehicle (EV) and battery manufacturers, including Tesla and Panasonic, to visit its Indonesian operations. The Australian company is in the process of expanding its nickel production capabilities to cater to the EV industry.
Focus on High Purity Nickel Production
The company is developing a $2.3 billion facility in Morowali, Indonesia, dedicated to producing high purity nickel essential for the EV sector. This plant will produce nickel products like sulphate, matte, and mixed hydroxide precipitate (MHP). Nickel Industries currently holds a 55% stake in this venture, with the remaining owned by Tsingshan, a leading stainless steel maker from China.
Search for Strategic Investors
Nickel Industries is exploring options to bring in investors for up to a 20% stake in the Indonesian plant, as Tsingshan plans to dilute its share. CEO Justin Werner expressed openness to investment from automakers. He disclosed that companies like Tesla, Panasonic, and Northvolt have already visited or plan to visit the plant soon.
Indonesia's Rising Nickel Industry
Indonesia is a key player in the global nickel market, contributing over half of the world's nickel supply and expected to account for nearly three-quarters by the decade's end. The country is increasingly becoming a hub for EV and battery manufacturers, with U.S. automaker Ford recently investing in a nickel processing plant in the region.
Plant Completion and Customer Acquisition Timeline
Nickel Industries' high-pressure acid leach (HPAL) plant is slated for completion by the end of 2025. It aims to produce around 70,000-80,000 tonnes of nickel products annually. The company anticipates securing customers for the plant by mid-2024.
