BASF and Eramet to Invest in a USD 2.6 billion Nickel Smelting Facility in Indonesia

February 2023

Germany’s BASF is finalizing a USD 2.6 billion partnership deal with French miner Eramet to invest in a nickel processing facility in Indonesia. The project, which will involve the development of a high-pressure acid leach plant (HPAL) in Weda Bay, Indonesia, will produce mixed hydroxide deposit (MHP) from nickel used in electric vehicle batteries.

Minister of Investment, Bahlil Lahadalia, said the investment plans proposed by the two companies were in line with the government’s aspiration to make Indonesia a world-class EV player. The announcement comes as Indonesia seeks to exploit its rich nickel resources to manufacture electric vehicle (EV) batteries and electric cars.

BASF CEO Martin Brudermüller said that BASF’s agreement with Eramet is in its final stages, and it is likely that a decision will be taken in the first half of 2023. The project will be owned by Eramet 51%, while BASF is expected to hold the remaining 49%. The new Eramet plant is expected to be operational in early 2026 with a capacity of up to 67,000tpa of nickel and around 7,000tpa of cobalt contained in MHP.

(Sources: BASF; Mining Technology)

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