A consortium of companies including the mining giant Glencore PLC (LON: GLEN) is set to invest a whopping US$9 billion in Indonesia’s mining and electric vehicle battery sectors.
Indonesia’s Minister of Investment Bahlil Lahadalia told reporters about the impending financing on Wednesday and said that it would be put toward an unnamed industrial park powered by wind energy on the country’s Sulawesi Island, one of the largest islands in the world.
According to Reuters, the ministry confirmed that the consortium would include the Indonesian miner Aneka Tambang Tbk PT (IDX: ANTM), the energy provider Envision Energy and Umicore in addition to Glencore.
“The investment is about US$9 billion if it is according to plans. If we can speed it up we’ll do it,” Lahadalia told reporters.
Indonesia is the world’s largest producer of nickel and the country’s Sulawesi Island is also known for having significant copper deposits, two key metals for EV batteries.
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Indonesia’s Morowali Industrial Park in central Sulawesi is the country’s largest nickel processing site. It spans about 3,000 hectares, has 11 smelters and is estimated to be worth about US$7 billion.
Earlier this month, China’s GEM Co Ltd (SHE: 002340) announced that it would be investing US$500 million in a nickel operation within the park that will produce about 20,000 tonnes of the metal per year.
A recent report from the French market researcher ReportLinker indicated that the global market for nickel was currently worth approximately US$38.5 billion.
Major automotive companies like Stellantis (NYSE: STLA), Ford Motor Company (NYSE: F) and General Motors Co. (NYSE: GM) have been investing vast sums of money in developing sustainable supply chains for electric vehicle battery materials and EV production infrastructure in recent days.
Canada’s Trade Commissioner Service says Indonesia is also one of the world’s largest coal producers, accounting for 14 per cent of the country’s exports.
rowan@mugglehead.com
