Stellantis in talks with Vale to invest in Indonesian nickel smelter
Stellantis is in talks with Vale and China’s Huayou Cobalt to invest in a nickel smelter in Indonesia and secure supplies of the battery metal critical to its electric vehicle expansion plans, in a deal that if finalised would bring a rare western investor into Indonesia’s nickel industry. Stellantis, owner of the Peugeot, Fiat and Jeep brands, is in discussions with Vale Indonesia to invest in a high-pressure acid leaching plant that converts low-grade nickel ore to battery-grade metal, three people familiar with the matter said.
Huayou, one of the world’s top producers of nickel and cobalt, will hold a stake in the project alongside Stellantis and Vale, with the size of the companies’ investment yet to be determined, they said. The investment by Stellantis would be a crucial win for Indonesia, which has been trying to attract western carmakers to its nickel industry. The domestic sector so far has been dominated by Chinese companies, which have poured in billions of dollars to process the metal used for stainless steel and EV batteries. For Stellantis, a potential Indonesian investment comes even as carmakers around the world scale back electrification plans because of slow adoption of EVs, underscoring its ambitions. Stellantis plans to invest €50bn in electrification over the next decade, with a goal to achieve net zero carbon emissions by 2038. The carmaker has signed offtake deals with suppliers of battery materials around the world in recent years.".
Stellantis is in talks with Vale and China’s Huayou Cobalt to invest in a nickel smelter in Indonesia and secure supplies of the battery metal critical to its electric vehicle expansion plans, in a deal that if finalised would bring a rare western investor into Indonesia’s nickel industry. Stellantis, owner of the Peugeot, Fiat and Jeep brands, is in discussions with Vale Indonesia to invest in a high-pressure acid leaching plant that converts low-grade nickel ore to battery-grade metal, three people familiar with the matter said.
Huayou, one of the world’s top producers of nickel and cobalt, will hold a stake in the project alongside Stellantis and Vale, with the size of the companies’ investment yet to be determined, they said. The investment by Stellantis would be a crucial win for Indonesia, which has been trying to attract western carmakers to its nickel industry. The domestic sector so far has been dominated by Chinese companies, which have poured in billions of dollars to process the metal used for stainless steel and EV batteries. For Stellantis, a potential Indonesian investment comes even as carmakers around the world scale back electrification plans because of slow adoption of EVs, underscoring its ambitions. Stellantis plans to invest €50bn in electrification over the next decade, with a goal to achieve net zero carbon emissions by 2038. The carmaker has signed offtake deals with suppliers of battery materials around the world in recent years.".
