Stellantis has its eyes set on Indonesia’s nickel supply. The legacy automaker is reportedly discussing a potential investment into a nickel smelter in Indonesia with Vale and China-based Huayou Cobalt.
Stellantis talks with Vale and Huayou hint that the company still believes in an future with electric vehicles. As per the Financial Times, Stellantis is talking with Vale and Huayou Cobalt to secure battery metals for its electric vehicle expansion plans. PT Vale Indonesia is a nickel miner that invests in Sulawesi island. Meanwhile, Huayou is one of the world’s top nickel and cobalt producers.
Stellantis, Vale, and Huayou Cobalt are considering an investment in a high-pressure acid-leaching plant in Indonesia. The plant would convert low-grade nickel ore into battery-grade metal, presumably for use in electric vehicles.
If the legacy automaker secures the investment in Indonesia’s nickel supply chain it would take an essential step in its €50 billion electrification plan. Stellantis aims to achieve net zero carbon emissions by 2038. Securing a battery supply chain for electric vehicle production would help Stellantis reach its goal.
Stellantis isn’t the only automaker eyeing Indonesia’s nickel supply. Tesla has allegedly been talking to Indonesia for years about its nickel reserves. In 2022, reports suggested that Tesla signed a $5 billion contract to purchase nickel products from Indonesia. In addition, in late 2023, Tesla reportedly visited a nickel plant in Indonesia to explore a potential investment.
Ford is also investing in Indonesia’s nickel industry. In March 2023, Ford announced a partnership with two other companies to build a nickel processing facility in Indonesia. The company invested $4.5 billion on the nickel facility.
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