The American car manufacturers giant Ford, based in the United States, has joined PT Vale Indonesia and China’s Zhejiang Huayou Cobalt as their new partners in a nickel processing plant in Indonesia that will cost $4.5 billion.
This is Ford’s first investment in the Southeast Asian nation and demonstrates that automakers are increasingly interest in raw materials for the production of electric vehicle (EV) batteries. These batteries make up about 40% of a vehicle’s price. Ford wants to cut costs and catch up to Tesla, the leader in the EV market.
Ford and Saskatchewan a American car manufacturers to invest $11.4 billion in EV development NOW PLAYING Carmakers plan $515 billion in EV investment Volkswagen, Europe’s largest automaker, announced this month that it would invest 180 billion euros ($196 billion) over five years in areas such as the production of batteries and the sourcing of raw materials. GM invests $7 billion to compete with EV competitors.
Indonesia, which has the largest nickel reserves in the world, has been working to develop nickel’s downstream industries with the ultimate goal of producing electric vehicles and batteries.
Meanwhile, The high-pressure acid leaching (HPAL) plant that Vale owns and operates a nickel mine will be in Pomalaa in Southeast Sulawesi.
The plant’s construction by Vale and Huayou Start in November, and commercial operation is anticipates to begin in 2026.
According to Febriany Eddy, chief executive of Vale Indonesia, the transaction is one of a kind because it brings the American automaker into the upstream nickel industry.
She stated that Ford and Huayou control the remaining stake, with Vale holding a 30% stake.
Howerver, The organizations didn’t say the amount Passage will put resources into the plant, as would considered normal to create 120,000 tons each extended time of blended hydroxide hasten, a material separated from nickel metal for use in EV batteries.
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Christopher Smith, Ford’s chief government affairs officer, state at the signing ceremony, “Ford can help ensure that the nickel that we use in electric vehicle batteries is mined, produce within the same ESG standards as part of our business around the world.”
Since 2020, the government of Indonesia has prohibited exports of unprocessed nickel ore in an effort to guarantee supply for existing and potential investors and to attract investment from global electric vehicle manufacturers like Tesla and China’s BYD Group.