Foreign investors eye nickel industry in Indonesia
Automakers and raw material extraction companies are eyeing the nickel industry in Indonesia as the race to secure raw materials for EV batteries continues to heat up.
Nickel is widely used to make lithium batteries -- the power source behind electric vehicles. (Photo:reuters.com)
Jakarta (VNA)💛 - Automakers and raw materialextraction companies are eyeing the nickel industry in Indonesia as the race to secure rawmaterials for EV batteries continues to heat up.
As reported by Reuters, while lithium, cobalt, andcopper have been the evident focus for many automakers as they pursueelectrification, nickel has also seen a similar growth in interest. Nickel iscommonly used in multiple lithium-ion battery chemistries, including NickelManganese Cobalt (NMC) and Nickel Cobalt Aluminium (NCA). This use has broughtthe world’s largest automakers to Indonesia, which has the largestnickel deposits on the planet. Recently, Fordannounced it will join a 4.5 billion USD alliance to construct a nickelprocessing facility in the country. This plant will undoubtedly help feedFord’s two massive battery production locations planned for the US.But more recently, another set of nickel processing plants has emerged from anIndonesian company, hoping to take advantage of the hype surrounding theirisland’s top metal. Merdeka Battery, a global battery materials supplier basedin Indonesia, has announced that it will construct two nickel processingfacilities in the country. According to an initial report from Reuters,the two facilities will have a combined output of 240,000 tonnes annually, andthe first plant has already entered development. To help fund the construction of these upcomingfacilities, Merdeka announced that it will launch an IPO, with the target ofacquiring 581 million USD, which will involve selling just over 10% of thebusiness to investors. Merdeka’s website states the company has partnered with Chinese steel giant Tsingshan Holding Group, who will be instrumental in establishing the two upcoming nickel processing plants. According to Reuters, Merdeka has not announced who they will supply once theirplants come online. Still, withsuch a profound need for the material they are producing, there is nodoubt they can supply many major EV makers, both within Asia and worldwide./.
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Nickel is widely used to make lithium batteries -- the power source behind electric vehicles. (Photo:reuters.com) 
