China’s GEM Expands Nickel Ventures with Strategic HPAL Project in Indonesia

Partnership Aims to Drive Green Energy Transition
Green Eco-Manufacture (GEM), a Chinese leader in battery metals, has joined forces with PT Vale Indonesia (PTVI) to develop a high-pressure acid leaching (HPAL) facility in Central Sulawesi, Indonesia. This joint venture is crucial for the growing electric vehicle (EV) industry, as it will supply nickel—a critical metal for battery production. The project aims to process nickel ore to produce 66,000 tons of mixed hydroxide precipitate (MHP) annually, a key precursor for advanced battery materials, such as nickel-cobalt-manganese (NCM) and cathode active materials (CAM). These materials are essential in the manufacturing of lithium-ion batteries, which power EVs.

Key Details of the HPAL Facility
The HPAL plant will process raw nickel ore provided by PTVI, producing MHP in nickel metal equivalent. The MHP will serve as a vital component for producing high-performance battery materials needed to support the growing EV market. This project is part of a broader strategy to meet the increasing global demand for sustainable, environmentally friendly nickel production, which is at the core of the green energy transition.

Ownership Changes and Investment Diversification
Initially, GEM owned a 70% stake in the HPAL project, with PTVI holding 30%. However, as the project gains traction, GEM plans to reduce its share to 25% or less. This shift is intended to bring in third-party investors, which will help diversify the financial backing and provide the necessary capital to scale up the project efficiently. By expanding the project’s financial base, GEM and PTVI aim to ensure its long-term sustainability and success.

Expansion of GEM’s Nickel Portfolio and Indonesia’s Role in the Global EV Market
GEM has already made significant strides in Indonesia’s nickel sector, including the completion of phase two of its QMB nickel project in Morowali. This facility now has the capacity to produce 65,000 tons per year of nickel metal equivalent in MHP. These investments are part of GEM’s broader strategy to solidify its presence in Indonesia’s resource-rich battery ecosystem, positioning the country as a critical supplier of battery materials for the global electric vehicle market.

China-Indonesia Collaboration Strengthens Global Battery Supply Chain
This partnership between GEM and PTVI is just one example of the increasing collaboration between China and Indonesia in the electric vehicle sector. Earlier this year, Chinese battery manufacturer Contemporary Amperex Technology Co., Ltd. (CATL) deepened its involvement in Indonesia by acquiring shares in a subsidiary of Indonesian mining giant PT Aneka Tambang. These strategic moves highlight the growing importance of Indonesia’s nickel reserves as a key source of sustainable battery materials, essential for the green energy revolution and the electrification of the global vehicle market.