President Joko “Jokowi” Widodo has asked PT Vale Indonesia (INCO) to accelerate the completion of its high-pressure acid leach (HPAL) nickel smelter project in Pomalaa, Southeast Sulawesi, during a meeting with the company’s top executives at the State Palace on Thursday, September 5, 2024.
The smelter, employing high-pressure acid leach (HPAL) technology, is crucial for the country’s electric vehicle battery supply chain development.
The directive was issued during a meeting with Vale’s leadership, including INCO President Director Febriany Eddy, Vale Base Metal Global Chairman Mark Cutifani, and Chief Sustainable and Corporate Affairs Emily Olson.
The meeting was also attended by Minister of State-Owned Enterprises Erick Thohir.
Following the meeting, Febriany Eddy expressed optimism, stating that the government has shown increased support for the project, especially after state-owned mining holding company PT Mineral Industri Indonesia (MIND ID) increased its stake in INCO to 34 percent, making it the majority shareholder.
“I believe we are receiving more support from the government, especially after the transfer of shares to MIND ID,” Febri said.
The Pomalaa nickel smelter is a US$4.5 billion (Rp69.1 trillion) joint venture between Vale, Zhejiang Huayou, and Ford Motor Company. The facility is projected to produce 120,000 tons of mixed hydroxide precipitate (MHP) annually, a key material for electric vehicle batteries.
It is expected to be operational by the first quarter of 2026, managed by PT Kolaka Nickel Indonesia in the Pomalaa nickel industrial area.
Febri added that government support, particularly in terms of regulatory permits, has been instrumental in advancing the project. She hopes this assistance will further accelerate the construction of the Pomalaa nickel smelter.
Collaboration with Ford
Febri also highlighted President Jokowi’s enthusiasm for the Pomalaa project due to Ford’s involvement.
This marks Ford’s first investment in Southeast Asia, as automakers globally seek to secure materials for electric vehicle battery production.
“The government is very excited about the Pomalaa project with Ford, hoping it will be completed soon, given the involvement of a global automaker operating in Indonesia,” Febri said.
The smelter project is seen as a critical step in building Indonesia’s nickel supply chain, from mining to electric vehicle battery production.
In the joint venture, Huayou holds a 53 percent stake, while INCO controls 30 percent, and Ford 17 percent.
The nickel processed at Pomalaa will supply raw materials for the automotive and electric vehicle industries.
This collaboration aligns with Ford’s goal of producing 2 million electric vehicles by the end of 2026, with materials from Pomalaa supporting the production of lithium-ion battery components.
“The government emphasizes the importance of utilizing Indonesia’s abundant nickel resources to build a comprehensive electric vehicle ecosystem,” Febri added.
The project is progressing smoothly, with environmental impact assessments and other permits being processed, according to Febri. The construction is taking place within an industrial area designated for nickel processing.
