Chinese battery metal producer GEM has signed a project investment cooperation framework agreement with PT Vale Indonesia, the Indonesian unit of the Brazilian mining company Vale, to establish a high-pressure acid leach (HPAL) facility in the central Sulawesi province of Indonesia.
The $1.4bn nickel processing facility is designed to produce at least 60,000t of contained nickel in MHP annually, a key component for ESS batteries.
The plant will adhere to zero-carbon and intelligent design principles.
The investment includes a $40m research and development centre for knowledge transfer and local talent development, $30m for an environmental, social and governance (ESG) compound with green landscaping, employee dormitories, domestic water supply and waste treatment, and $10m for community development and public facilities.
PT Vale CEO Febriany Eddy said: "This project is not just about producing MHP – it is about creating a model for responsible resource management that benefits Indonesia and the world. By integrating advanced technology, eco-friendly practices and a commitment to net-zero production, we are shaping a future where Indonesia is recognised as a leader in sustainable industrial development."
Both companies are also exploring the possibility of establishing downstream anode and precursor factories.
Ownership of the project will be divided, with GEM holding up to a 25% stake, PT Vale Indonesia taking 30% and the introduction of a third party for the remaining share, reported Bloomberg.
GEM chairman Professor Xu Kaihua said: "The HPAL Project represents a vital collaboration that merges our expertise in sustainable materials with Indonesia's rich resources. This project is not only a step toward a cleaner future but a foundation for deeper cross-border cooperation in green innovation.
“GEM will unite with Vale to apply zero-carbon emission, intelligence, high- technology and ESG concepts in designing this project and create a world-class green demonstration park with green nickel resources, local technologies and local talents, to smelt laterite nickel ore directly into battery material.”
PT Vale Indonesia already has two HPAL plants under construction in Pomalaa and Sorowako on Sulawesi island in collaboration with Zhejiang Huayou Cobalt.
