Ford's Smelter to Partake in Indonesia's EV Ecosystem
Ford Motor Co signed a final investment agreement with PT Vale Indonesia Tbk (INCO) and Zhejiang Huayou Cobalt from China to build a US$4.5 billion nickel processing plant in Pomalaa, Southeast Sulawesi.
The High-Pressure Acid Leaching (HPAL) smelter will produce 120,000 tons of hydroxide precipitate per year for electric vehicle battery production. Vale Indonesia CEO Febriany Eddy said the agreement was unique because Ford, a vehicle manufacturer, decided to venture into the upstream nickel business.
In this project, Vale holds a 30 percent stake. "Ford and Huayou control the rest," she said on Thursday.
Meanwhile, Ford chief government affairs officer Christopher Smith said this agreement would ensure the company's raw material productions are under the same environmental, social and governance (ESG) standards. "As part of our business around the world," he said.