Indonesian investment firm Danantara, through its subsidiary Danantara Investment Management, has signed a US$1.42 billion (Rp23.29 trillion) partnership with GEM Limited and PT Vale Indonesia (INCO) to build a High-Pressure Acid Leach (HPAL) smelter with an annual capacity of 66,000 tons of nickel.

Founded in 2001 in Shenzhen, GEM is listed on both the Shenzhen Stock Exchange and the Swiss Stock Exchange. GEM Limited, a global public company specializing in green metallurgy and circular economy solutions, is recognized for its commitment to human capital development.

Danantara Indonesia CEO Rosan Roeslani said the partnership with GEM marks a major milestone in advancing strategic investments to accelerate Indonesia’s socio-economic transformation.

“Our collaboration with a global pioneer in green metallurgy will reinforce Indonesia’s downstream agenda, while keeping sustainability and innovation as top priorities,” Rosan said as quoted in a statement on August 28, 2025.

“From R&D integration to green energy and closed-loop recycling, this project represents the kind of high-impact initiatives that will create long-term value for Indonesia and our investment partners.”

Over the next five years, GEM projects the creation of up to 80,000 new jobs and broader economic impact through initiatives at the Indonesia Green Industrial Park (IGIP).

Beyond nickel processing, GEM’s long-term vision includes cathode materials, battery cells, high-grade nickel plates, and heavy equipment manufacturing. All of its projects are designed to run on green energy, supported by closed-loop recycling systems that embed sustainability across every stage of production.

The company has pledged US$30 million to establish a state-of-the-art metallurgical research laboratory with the Bandung Institute of Technology (ITB). The partnership aims to strengthen Indonesia’s role as a regional hub for metallurgical R&D.

In Indonesia, GEM has made significant investments in nickel-based new energy materials, including high-tech nickel industrial zones, innovation labs in partnership with universities, and scholarship programs to train graduate and doctoral-level metallurgists.

It employs over 11,000 staff across China, South Africa, South Korea, and Indonesia. As a global leader in urban mining and recycling, GEM processes more than 10 percent of China’s end-of-life EV batteries and e-waste annually, recovering over 20 key minerals including cobalt, nickel, and lithium. The company has been recognized by both the World Economic Forum (WEF) and the United Nations for its leadership in advancing the circular economy.