Reuters | September 7, 2023 |
Statue of President Jokowi at Mandalika International Street Circuit.
Indonesia has asked the United States to begin talks on a trade deal for critical minerals so that exports from the Southeast Asian country can be covered under the US Inflation Reduction Act, an Indonesian ministry said on Thursday.
The request was made when Indonesian President Joko Widodo met with US Vice President Kamala Harris on the sidelines of meetings hosted by the Association of Southeast Asian Nations (ASEAN) in Jakarta on Wednesday.
Under guidelines for the US law issued in March, Washington has required that a certain amount of critical minerals in electric vehicle (EV) batteries be produced or assembled in North America or a free trade partner, for EVs sold in the United States to be eligible for tax credits.
Indonesia does not have a free trade agreement with the United States, but the resource-rich country has ambitions to become a major player in the manufacturing of EVs and their batteries, leveraging its vast nickel reserves.
“Indonesia is a producer and holder of the world’s biggest nickel reserves amounting to 21 million metric tons, so Indonesia can become a supplier for … batteries and EVs in the US,” Jokowi, as the president is popularly known, was quoted as saying by the Indonesian ministry of economic affairs.
“Indonesia invites the US to discuss the formation of the Critical Mineral Agreement,” Jokowi added.
The president also hoped that Indonesia’s involvement in the US-led Indo-Pacific Economic Framework (IPEF) could allow its mineral exports to be recognized for “green subsidies” under the inflation act, according to the ministry’s statement.
The plan to propose a limited free trade deal with the United States was first brought up in April by senior Indonesian minister Luhut Pandjaitan, who said Jakarta wanted to offer Washington an agreement akin to the March deal between Japan and the Western power for EV battery minerals.
Harris, during the opening speech of the bilateral meeting, said she would continue to work with Indonesia to build supply chains that included “critical minerals required to expand our clean energy economies” and to boost trade between the two countries through IPEF.
(By Gayatri Suroyo; Editing by Kanupriya Kapoor)
Vale Base Metals to invest $10 billion in Indonesia over next decade
Image courtesy of PT Vale Indonesia.
Vale Base Metals is committing $10 billion for investment in Indonesia over the next decade to capture demand for metals such as nickel and copper for electric vehicle production, its chief executive said on Thursday.
The investment is part of the company’s plan to spend $25 billion to $30 billion in new projects in Brazil, Canada and Indonesia over the next decade.
It will also further Indonesia’s ambition to be a global hub for the battery materials for EVs and even the vehicles themselves. The country, Southeast Asia’s largest economy, has the world’s largest reserves of nickel ore and large amounts of copper and bauxite for aluminum.
Through subsidiary PT Vale Indonesia, Vale Base Metals is developing two high-pressure acid leaching (HPAL) plants with China’s Zhejiang Huayou Cobalt Co and other partners.
The facilities will produce mixed hydroxide precipitate (MHP) from nickel, a material used to make electric vehicle batteries.
Vale is also partnering with China’s Shandong Xinhai Technology Co. Ltd and a unit of China Baowu Steel Group Corp. Ltd to build a ferro-nickel plant.
These projects would take the refining capacity of Vale Indonesia from around 75,000 metric tons per year to close to 300,000 tons, said Vale Base Metals CEO Deshnee Naidoo.
“If all the plans come right, this will happen in the next five to eight years. This is serious investment and we are committed,” Naidoo said in an interview on the sidelines of Indonesia Sustainability Forum in Jakarta.
In Vale’s Pomalaa project, the company is investing $1 billion for the mines alone and has started initial work for the HPAL facility. The $3.5 billion HPAL plant will be co-developed with Huayou, with US car-maker Ford Motors taking a 17% stake and arranging financing, Naidoo said.
Vale has also started works at the Sorowako HPAL project, which will produce 60,000 tons of nickel in MHP annually.
“We are now looking at partnerships to further go downstream with these projects,” Naido said, adding that she is open to partner with carmakers for Vale’s Indonesian projects following the collaboration with Ford.
Vale is also conducting exploration at a copper mine in Indonesia’s West Nusa Tenggara which could potentially be comparable to the Grasberg copper mine in eastern Indonesia in size.
Grasberg is the world’s second-biggest copper mine, operated by a unit of Freeport McMoran.
An investment decision for the copper project is expected around 2026.
(By Fransiska Nangoy)
Reuters | September 7, 2023 |
Image courtesy of PT Vale Indonesia.
Vale Base Metals is committing $10 billion for investment in Indonesia over the next decade to capture demand for metals such as nickel and copper for electric vehicle production, its chief executive said on Thursday.
The investment is part of the company’s plan to spend $25 billion to $30 billion in new projects in Brazil, Canada and Indonesia over the next decade.
It will also further Indonesia’s ambition to be a global hub for the battery materials for EVs and even the vehicles themselves. The country, Southeast Asia’s largest economy, has the world’s largest reserves of nickel ore and large amounts of copper and bauxite for aluminum.
Through subsidiary PT Vale Indonesia, Vale Base Metals is developing two high-pressure acid leaching (HPAL) plants with China’s Zhejiang Huayou Cobalt Co and other partners.
The facilities will produce mixed hydroxide precipitate (MHP) from nickel, a material used to make electric vehicle batteries.
Vale is also partnering with China’s Shandong Xinhai Technology Co. Ltd and a unit of China Baowu Steel Group Corp. Ltd to build a ferro-nickel plant.
These projects would take the refining capacity of Vale Indonesia from around 75,000 metric tons per year to close to 300,000 tons, said Vale Base Metals CEO Deshnee Naidoo.
“If all the plans come right, this will happen in the next five to eight years. This is serious investment and we are committed,” Naidoo said in an interview on the sidelines of Indonesia Sustainability Forum in Jakarta.
In Vale’s Pomalaa project, the company is investing $1 billion for the mines alone and has started initial work for the HPAL facility. The $3.5 billion HPAL plant will be co-developed with Huayou, with US car-maker Ford Motors taking a 17% stake and arranging financing, Naidoo said.
Vale has also started works at the Sorowako HPAL project, which will produce 60,000 tons of nickel in MHP annually.
“We are now looking at partnerships to further go downstream with these projects,” Naido said, adding that she is open to partner with carmakers for Vale’s Indonesian projects following the collaboration with Ford.
Vale is also conducting exploration at a copper mine in Indonesia’s West Nusa Tenggara which could potentially be comparable to the Grasberg copper mine in eastern Indonesia in size.
Grasberg is the world’s second-biggest copper mine, operated by a unit of Freeport McMoran.
An investment decision for the copper project is expected around 2026.
(By Fransiska Nangoy)
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