25-7-2023 (JAKARTA) China’s Zhejiang Huayou Cobalt announced on Tuesday its plan to invest $200 million in a nickel sulfate project in Indonesia, a significant expansion of its production of this crucial battery raw material.
The project, with a capacity of 50,000 metric tons, will be undertaken by Huayou’s subsidiary, Huayao International Investment, in a joint venture with Singapore-based Strive Investment Capital and Lindo Investment PTE, according to the company’s statement.
Being one of the world’s leading battery material manufacturers, Huayou has been consistently increasing its production capacity in ternary precursors and cathode materials both within China and internationally. According to Susan Zou, a vice president at Rystad Energy in Shanghai, this latest move is a strategic decision aimed at expanding their reach into the upstream supply chain for their products.
The joint venture has been named Huaxiang Refining Indonesia, as stated by the company.
In addition to the nickel sulfate project, Huayou also revealed its plans for its mining unit, Huayou International Mining, to acquire a 50.15 percent stake in privately owned Perlux Limited for $200.4 million. This acquisition will provide Huayou with ownership of two ferro-nickel production lines in Indonesia, with an annual output capacity of 24,000 metric tons of nickel content.
As a leading producer of nickel and cobalt, Huayou’s expansion efforts are not limited to nickel alone. The company is also ramping up its investment in lithium, having commissioned a $300 million lithium plant in Zimbabwe earlier this month.
