Indonesian Nickel Producer to Build USD 1.8 Billion Plant

An Indonesian nickel producer, PT Merdeka Battery Materials, plans to build a high-pressure acid leach plant costing USD 1.8 billion in Sulawesi. This initiative aims to enhance Indonesia’s domestic nickel processing capabilities, critical for electric vehicle production. Funded partially by a USD 1.4 billion loan, construction will begin in January and is expected to take 18 months. However, the project comes amid concerns regarding working conditions in Chinese-funded facilities and environmental impacts related to nickel mining.

Key Points

  • PT Merdeka Battery Materials to construct a USD 1.8 billion nickel processing plant in Sulawesi.
  • Project aims to bolster Indonesia’s role in nickel refining for electric vehicles.
  • Partially financed by a USD 1.4 billion loan, construction starts in January and will last 18 months.
  • Concerns exist over worker protests and environmental issues linked to nickel mining activities.
  • Indonesia has stopped raw nickel exports since 2020 to promote domestic processing.


Image source: chinaglobalsouth.com

Source Link: https://chinaglobalsouth.com/2025/02/26/indonesian-nickel-producer-to-build-1-8-billion-plant/


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