China’s Zhejiang Huayou Cobalt announced on Tuesday its plans to invest $200 million in a nickel sulfate project in Indonesia, as part of its efforts to expand production of this essential battery raw material. The investment will be made through its subsidiary, Huayao International Investment, in a joint venture with Singapore-based Strive Investment Capital and Lindo Investment PTE.
As one of the world’s leading battery material manufacturers, Huayou has been increasing its capacity in ternary precursors and cathode materials both domestically and internationally. This strategic move aims to expand its presence in the upstream supply chain for its products, according to Susan Zou, Vice President at Rystad Energy based in Shanghai.
The joint venture will be named Huaxiang Refining Indonesia. The project is set to have a production capacity of 50,000 metric tons of nickel per year, strengthening Huayou’s position in the battery raw materials market.
In addition to the nickel sulfate project, Huayou also revealed plans for its mining unit, Huayou International Mining, to acquire a 50.15% stake in privately owned Perlux Limited for $200.4 million. The acquisition will provide Huayou with ownership of two ferro-nickel production lines in Indonesia, with an annual output of 24,000 metric tons of nickel content.
Huayou has also been increasing its investments in the lithium sector, having recently commissioned a $300 million lithium plant in Zimbabwe earlier this month. The company’s proactive approach towards diversifying its portfolio across battery-related materials reflects its commitment to meet the growing demands of the electric vehicle and renewable energy industries.
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