Construction is expected to start imminently after the group received all relevant approvals

PT Vale Indonesia (PTVI) has signed a cooperation agreement with Zhejiang Huayou Cobalt (Huayou) to develop a high-pressure acid leach (HPAL) in Malili, South Sulawesi in Indonesia. The plant has been designed with a capacity to produce 60ktpy Ni- and 5ktpy Co-in-mixed hydroxide precipitate (MHP). PT Huali Indonesia is on track to commence production in early 2027 and will source limonite ore from PTVI’s Sorowako mine subject to Vale completing a feasibility study for the mine. Nickel and cobalt intermediates produced will target the EV battery market.

This deal represents the second major partnership between Vale and Huayou in Indonesia after the two companies teamed up with Ford in March to develop a larger 120ktpy Ni-in-MHP plant in Pomalaa. Site preparations at Pomalaa commenced earlier this year with a view to start commercial operations by 2026. These collaborations utilise PTVI’s access to local ore and Huayou’s expertise in hydrometallurgical processing to produce MHP. This material is further processed to produce nickel sulphate and ternary cathode active materials (pCAM).

As with the Pomalaa project, it is uncertain whether teaming up with Chinese company Huayou as part of the Huali project will impact this material’s eligibility to qualify for US Inflation Reduction Act (IRA) tax credits. PT Vale reportedly owns a 30% stake in the Pomalaa project with the remaining share balance between Ford and Huayou undisclosed. PT Vale’s interest in the Huali project was not clarified as part of the recent announcement, however, it is expected to be similar to Pomalaa. Earlier this year, the Indonesian government proposed a limited free trade agreement with the USA, although no further developments were reported.