CATL to Produce Lithium-Ion Batteries in Indonesia
Indonesian state-owned corporation Indonesia Battery has formed a joint venture with China's Contemporary Amperex Technology (CATL) to establish a lithium-ion battery production facility for electric vehicles. Capital investment in the project is expected to be at least $1.2 billion, with a production capacity of up to 15 gigawatt-hours per year.
This project is a significant step towards realizing the Indonesian government's strategy to create a full electric vehicle production chain, from mining and processing nickel to manufacturing finished vehicles. Earlier this year, South Korea's Hyundai Motor Group and LG Energy Solution commissioned Indonesia's first battery cell manufacturing plant, while China's BTR New Material Group launched an anode material production facility.
By leveraging the strong nickel industry that Indonesia has developed in recent years, authorities are seeking to attract foreign investment to establish their own electric vehicle industry. This strategy not only supports employment growth but also increases domestic nickel usage, reducing reliance on exports that have driven down global prices for the metal, thereby affecting Indonesia's foreign exchange earnings.
The development of lithium-ion batteries and electric vehicles could position Indonesia as a major production hub, while also positively influencing lithium prices, which—like nickel—are currently at low levels.
Nexans Aims to Increase Copper Scrap Processing
French cable and wire manufacturer Nexans plans to build a copper scrap processing plant adjacent to its existing facility in Lens, increasing the total smelting capacity for copper scrap to 80,000 tons per year. The equipment will be designed, manufactured, installed, and commissioned by Continuus Properzi, an Italian company specializing in non-ferrous metal melting and continuous casting technologies.
Nexans' capital investment in the new plant will amount to $95 million, and it will produce copper wire rod, which serves as a billet for manufacturing cables and wires used across various energy sectors. The project is expected to be completed by 2026.
In parallel, Nexans will expand copper scrap collection across France to ensure the new plant is fully supplied with raw materials when it begins operations. This initiative will help Nexans increase the share of recycled copper in its products to 30% by 2030, aligning with a broader trend in the European non-ferrous metals industry to reduce carbon footprints and dependence on concentrate supplies.
Nickel Surplus Expected to Keep Pressure on Prices
Nickel prices in the global market are expected to remain under pressure from an ongoing surplus until the end of this year, according to BMI forecasts. The average nickel price for 2024 has been revised down from $18,000 to $17,300 per ton.
Global market conditions have become more complicated following the discovery of the Wedei deposit in Papua New Guinea, which could make the country a key supplier of nickel raw materials or pure metal. Nickel prices on the London Metal Exchange (LME) in 2024 experienced strong volatility, reaching a low of $15,305 per ton in July after a May high of $21,615 per ton. In September, prices rebounded to $16,996 per ton, but they have since started falling again, currently standing at $16,255 per ton.
However, prices may find some support from the Indonesian government’s decision to reduce quotas for nickel raw material exports and a decreased production forecast at the Weda Bay mine. Meanwhile, nickel production is expected to continue growing in Indonesia and China, contributing to the global surplus. At the same time, reduced output in Western countries may provide some price stability, potentially preventing prices from falling below $15,000 per ton.
Wieland Group Harnesses Solar Energy
Wieland Group, Germany's largest producer of copper semi-finished products, has launched a solar power plant capable of generating 29 gigawatt-hours of electricity annually. Wieland's capital investment in the solar power project amounted to nearly $22 million, covering the purchase, installation, and commissioning of 48,000 solar modules, 14 transformers, a substation, and other facilities. The solar plant is located five kilometers from Wieland Group's main office.
According to Wieland's forecasts, the power plant will meet 8% of the electricity needs for all its metallurgical plants in Germany. Additionally, Wieland will receive electricity from another solar plant currently under construction by Vattenfall, with an annual capacity of approximately 46 gigawatt-hours. Once operational, this facility is expected to supply 13% of Wieland’s electricity requirements.
The use of solar energy is part of Wieland Group's broader plan to increase the share of renewable energy in its energy mix. The company is also exploring opportunities for wind farm projects within both the European Union and the United States, where it operates. Wieland is not alone in this trend—other non-ferrous metals producers, including Alcoa and Norsk Hydro, are also investing in renewable energy projects.
U.S. Proposes Sanctions on Palladium Exports from Russia
The U.S. government has proposed that its G7 partners consider imposing sanctions on titanium and palladium exports from Russia. This suggestion has led to discussions regarding the feasibility and potential impact of such measures on Russia's revenues.
The issue is complex; Russia produced 92 tons of palladium last year, compared to 16 tons from Canada and 9.8 tons from the U.S., according to the U.S. Geological Survey. Global palladium output was 210 tons, with Russia accounting for nearly 45% of the supply. The proposal would aim to eliminate a key supplier from the global market, which may be challenging given that most G7 countries do not produce palladium, and other producers—such as the U.S., Canada, South Africa, and Zimbabwe—have limited capacity for increased output.
If sanctions are imposed, palladium prices are likely to rise by at least 50% (they have already increased by 10% on the news of potential sanctions). This increase could significantly affect the cost of catalysts for cars, oil refining, electronic parts, medical instruments, pacemaker components, anti-tumor drugs, and other critical products.
Higher palladium prices would lead to increased costs for automobiles, gasoline, consumer electronics, and more. Manufacturers might also face difficulties in finding alternative palladium suppliers quickly, potentially resulting in reduced output.
