Weekly Metals News Digets – May 20-24
Indonesia Invites Elon Musk for Battery Plant Venture
Proposal to Build Electric Vehicle Battery Plant
The Indonesian government has extended an invitation to Tesla CEO Elon Musk to consider establishing an electric vehicle battery plant in Indonesia. This invitation aligns with President Joko Widodo's strategy, initiated after his election in 2014, to transform Indonesia into a global hub for electric vehicle and battery production. In November 2023, President Widodo announced plans to foster an integrated ecosystem capable of producing 600,000 electric vehicles annually by 2030.
Indonesia's position as one of the largest nickel reserve holders globally is pivotal to this initiative. The country produced 48% of the world’s nickel last year and anticipates increasing this share to 75% by 2030. President Widodo has been engaging with Elon Musk for several years to realize this vision, although Musk has only committed to investing in Indonesia so far, without confirming the establishment of a battery plant.
Copper Market Surplus Exceeds Annual Projections
Increased Global Production and Consumption
The first quarter of the year saw a significant increase in copper production and consumption. According to the International Copper Study Group, production of copper ores increased by 6% to 5.517 million tons. Primary copper production rose by 4.7% to 5.702 million tons, and secondary copper production from scrap increased by 8% to 1.161 million tons. Global consumption of copper also grew by 4% to 6.576 million tons during this period.
These increases led to a surplus of 287 thousand tons in the global copper market, up from 200 thousand tons the previous year. Notably, copper smelting in China grew by 6.5% due to the expansion of existing metallurgical plants and the commissioning of new ones, while in Japan, it increased by 3% after a winter decline.
Growth in Titanium Consumption in Russia
Market Capacity and Production
The Russian titanium products market is experiencing robust growth, with consumption last year exceeding 18 thousand tons, a significant increase from the traditional 12-13 thousand tons. Engine construction remains the largest consumer at 40%, followed by the aviation sector at 19%, and other industrial sectors making up the remaining 40%.
Production of titanium sponge is primarily shared between VSMPO-AVISMA Corporation and Solikamsk Magnesium Plant, with the former producing 42 thousand tons and the latter 1.5 thousand tons by the end of 2023. Additionally, Russia imported over 2.7 thousand tons of titanium sponge from China last year.
Indonesian Nickel Brand Listed on London Metal Exchange
PT CNGR Ding Xing New Energy Listing
Indonesian metallurgical company PT CNGR Ding Xing New Energy has achieved a milestone by listing its nickel output under the DX-zwdx trading brand on the London Metal Exchange. This listing marks the first Indonesian nickel brand on the exchange, significantly enhancing the country’s presence in the global nickel market.
This development is expected to increase competition among nickel producers and boost the liquidity of stocks in certified warehouses. Over the past year, stock levels at the London Metal Exchange have doubled to 84,042,000 tons, the highest since February 2022.
Oman Enters the Copper Market
Launch of Copper Concentrate Shipments
Al Hadeetha Resources, a joint venture between Australia's Alara Resources and Oman's Al Hadeetha, is set to dispatch the first shipment of copper concentrate from the Al Wash-hi Majaza mine on May 27. This milestone marks Oman's entry into the copper market, with the shipment headed to international trader Trafigura.
The granting of a mining license in 2018 to Alara Resources by the Omani government marked the beginning of ore mining in the country. Over the next decade, the Al Wash-hi-Majaza mine is expected to produce approximately 80 thousand tons of copper and 22 thousand troy ounces of gold from over 10 million tons of ore reserves.
Forecast: Indonesia’s Rising Influence in the Nickel Market
Strategic Nickel Projects
The Indonesian government recently approved 16 strategic projects, including five industrial parks focused on nickel product production. These projects, with a total investment of $39.6 billion, involve the production of mixed hydroxide, nickel, and cobalt sulfates for electric vehicle batteries.
Among the significant projects, Anugrah Neo Energy Materials in collaboration with China's Gotion Indonesia Materials plans to establish an MHP plant with a capacity of 120 thousand tons per year. Additionally, Brazilian Vale and Chinese partners will construct two plants using acid pressure leaching technology.
