PT Vale Indonesia Targets 2026 for Nickel Processing Plant Operation in Southeast Sulawesi
PT Vale Indonesia (INCO) has announced plans to commence operations at its nickel processing plant in Pomalaa, Southeast Sulawesi, by the first quarter of 2026. This move is part of the company’s broader strategy to enhance its nickel processing capabilities in response to the growing global demand for nickel, particularly for use in electric vehicle (EV) batteries.
Febriany Eddy, President Director of PT Vale Indonesia, stated that the construction of the Pomalaa smelter is projected to reach around 20% completion by the end of 2024, with full operational capacity expected to be achieved in early 2026. The smelter is designed to produce up to 120,000 tons of nickel.
"Our goal is to reach about 20% progress on the Pomalaa smelter by the end of this year, and we plan to start production in the first quarter of 2026," Febriany told CNBC Indonesia on August 23, 2024.
PT Vale Indonesia is currently advancing three significant smelter projects: the High Pressure Acid Leach (HPAL) project in Pomalaa, a nickel matte smelter project in Sorowako, South Sulawesi, and a ferronickel smelter project in Bahodopi, Central Sulawesi. The combined investment for these projects is estimated to be between US$8.6 billion and US$9 billion (approximately Rp143 trillion).
The Pomalaa smelter project is being developed in partnership with Zhejiang Huayou Cobalt Co., while the Morowali smelter project is in collaboration with Shandong Xinhai Technology Co., Ltd. The Sorowako smelter project also involves Zhejiang Huayou Cobalt Co.
"Our existing plant in Sorowako has been operational for a considerable time, and we are continuously expanding. We’re launching new Greenfield projects in Bahodopi and Pomalaa, along with another new project in Sorowako," Febriany added.
These expansion efforts are largely driven by the rising demand for nickel, especially for EV batteries, as nickel is a key component in battery production. The future outlook for nickel demand appears strong, presenting significant opportunities for Indonesia, which boasts abundant nickel resources.
