Multinational automaker Stellantis is eyeing a potential investment in Indonesia’s nickel supply chain to aid its electric vehicle expansion plans.
The company is currently in talks with nickel miner PT Vale Indonesia and leading nickel and cobalt producer Huayou Cobalt, Financial Times reports, citing three sources familiar with the negotiations.
Stellantis in talks with Vale and Huayou Cobalt
Stellantis is exploring a potential partnership with Vale Indonesia and China’s Huayou Cobalt to invest in a high-pressure acid leaching plant in Indonesia.
For context, Vale Indonesia is a nickel miner with investments in Sulawesi Island, while Huayou is a China-based nickel and cobalt producer.
The three companies reportedly plan to convert low-grade nickel ore into battery-grade metal at the potential high-pressure acid leaching plant.
The move can enable Stellantis to secure critical battery minerals to boost its electric vehicle production.
Significance
The potential investment in Indonesia’s nickel supply chain would mark a key step in Stellantis’ €50 billion electrification plan.
Notably, the multinational automaker set a target of reaching net zero carbon emissions by 2038.
In that sense, it is crucial for the company to secure a solid electric vehicle battery supply chain to hit the 2038 target.
Indonesia’s appeal to electric automakers
Stellantis is just one of many automakers expressing great interest in Indonesia’s nickel supply. It is unsurprising, given that the country accounts for over 50% of global nickel supplies.
According to Teslarati, Tesla has long been in talks with the Indonesian government about its rich nickel reserves. The Musk-led company reportedly inked a $5 billion contract to acquire nickel products from the Southeast Asian country in 2022.
Late last year, Tesla apparently went to a local nickel plant to analyze investment prospects.
In addition, American legacy automaker Ford also announced its investment in the country’s enormous nickel reserves. It partnered with two other firms to establish a local nickel processing facility with a $4.5 billion investment.
Stellantis, Vale, and Huayou Cobalt have yet to finalize the potential size of the investment.
