The Pomalaa high-pressure acid leach (HPAL) project is expected to commence operations in Q1 2026 as scheduled, with a nameplate capacity of 120ktpy Ni-in-MHP.

On 15 December 2025, Huayou Cobalt successfully completed the installation of its first high-pressure autoclave, marking a major construction milestone since work began in September 2025.

The project is operated by PT Kolaka Nickel Indonesia (PT KNI), a joint venture between Huayou Cobalt (73.2%), PT Vale Indonesia (PTVI) (18.3%), and Ford Motor (8.5%). Under the current agreement, Ford may increase its participation to 17%, while PTVI retains the right to raise its equity share to 30%.

Once operational, PT KNI will become the first mixed hydroxide precipitate (MHP) producer in Indonesia with direct ownership by a Western automaker. The facility will source limonite ore as feedstock from PTVI’s Pomalaa mine, located nearby.

The HPAL plant is situated within Huayou’s Indonesia Pomalaa Industrial Park (IPIP) in Southeast Sulawesi, Indonesia. The project follows Huayou’s two earlier HPAL operations — with a combined capacity of 180ktpy Ni-in-MHP — located in Tsingshan Group’s Indonesia Morowali Industrial Park (IMIP) and Indonesia Weda Bay Industrial Park (IWIP) .

In 2026, alongside Huayou’s Pomalaa project, two additional large-scale HPALs are expected to come online in Indonesia:

- Tsingshan Group’s Blue Flame project in IWIP, with a capacity of 120ktpy Ni
- Nickel Industries’ Excelsior Nickel Cobalt (ENC) project in IMIP, with a capacity of 144ktpy Ni over two phases, with planned integrated downstream production of nickel cathode and nickel sulphate

Together, these three projects will add approximately 384ktpy Ni of new MHP supply to feed nickel cathode and nickel sulphate production in China and Indonesia.

This substantial influx of MHP is expected to extend the current nickel oversupply and maintain downward pressure on prices through 2026. Project Blue forecasts the global nickel market surplus to reach around 275kt Ni in 2026.