According to foreign media reports, Ford announced on Thursday local time an agreement with PT Vale Indonesia Tbk, a subsidiary of Brazilian mining giant Vale SA, and China’s Zhejiang Huayou Cobalt Co. Ltd. to build a joint venture nickel processing plant in Indonesia at a cost of US$4.5 billion (currently about RMB 30.96 billion) to ensure the supply of nickel for its electric car batteries.
According to foreign media reports, the nickel processing plant started construction in November last year and is expected to start commercial operation in 2026.
This is reportedly Ford’s first investment in Indonesia, highlighting the automaker’s growing demand for raw materials used in the production of electric vehicle batteries. It is unclear how much Ford has invested in this project.
Nickel is a key material for making electric car batteries, making them energy-dense and allowing cars to run farther on a single charge. Nickel supplies are only likely to become more important as automakers seek to move away from the more controversial rare earth elements.
In August 2022, Ford signed a nickel supply agreement with Australian mining company BHP Group. Under the agreement, BHP Billiton’s Western Australia-based Nickel West will supply nickel to Ford. i
