Stellantis, a legacy automaker, is in discussions with Vale and China-based Huayou Cobalt to potentially invest in a nickel smelter in Indonesia. This signifies the company’s continued belief in a future with electric vehicles, as it seeks to secure battery metals for its electric vehicle expansion plans. PT Vale Indonesia and Huayou Cobalt are prominent players in the nickel and cobalt production industry, with the former investing in Sulawesi island.
The potential investment in a high-pressure acid-leaching plant in Indonesia is being considered, with the aim of converting low-grade nickel ore into battery-grade metal for use in electric vehicles. This move would play a crucial role in Stellantis’ €50 billion electrification plan as it strives to achieve net zero carbon emissions by 2038. Securing a battery supply chain would significantly contribute to reaching this goal.
Notably, Stellantis is not the only automaker interested in Indonesia’s nickel supply. Tesla has been in discussions regarding Indonesia’s nickel reserves for years, and reportedly explored a potential investment in a nickel plant there in late 2023. Ford has also invested significantly in Indonesia’s nickel industry, committing $4.5 billion to a nickel facility.