Bisnis, JAKARTA — The promising outlook for the demand of nickel derivative products used in electric vehicle battery components is attracting metal mineral mining companies to invest in smelter projects employing high-pressure acid leach (HPAL) technology.

Recently, PT Merdeka Battery Materials Tbk. (MBMA) has partnered with a subsidiary of the Chinese company GEM Co Ltd (GEM) to establish a high-pressure acid leach (HPAL) processing plant with an annual capacity of 30,000 tons of nickel in the form of Mixed Hydroxide Precipitate (MHP).

This smelter will be constructed and operated by PT ESG New Energy Material (HPAL JV Co) with a total investment of $ 600 million, equivalent to IDR 9.24 trillion (exchange rate of IDR 15,410 per USD).

In this joint venture, MBMA will hold a 55% ownership stake, while GEM 45%. GEM also has the option to transfer 21.5% of its ownership in HPAL JV Co to Ecopro Co., Ltd.