Huayou Cobalt Industry invests US $2.1 billion to build Indonesian Nickel Mine Project

Huayou Cobalt said on Monday that it would work with electric car battery maker EVE Energy and other companies on a $2.08 billion nickel-cobalt project in Indonesia.

The company also paid $210 million for a stake in Chinese battery material maker Tianjin Beverm Technology Co., Ltd., as it plans to invest in the entire rechargeable battery supply chain.

Huayou Cobalt will hold a 20 per cent stake in PT Huayu Nickel Cobalt, an Indonesian joint venture. This is the third nickel battery smelting project for cobalt producers in Indonesia, which is becoming an important center for battery chemicals.

The latest site will be at Weida Bay on Hama Hera Island, where Huayou has partnered with Castle Peak Holdings Group on the nickel sulfate project. Huayou said in a filing on the Shanghai Stock Exchange that the company aims to produce 120000 tons of nickel and 15000 tons of cobalt per year in terms of metal content.

EVE will have a 17 per cent stake, with other partners including Wynn Holdings (31 per cent), Glaucous International Pte Ltd (30 per cent) and Lindo Investment Pte Ltd ((2 per cent).

Daiwa Capital Markets said in a report that although Huayou only owns a 20% stake in the project, the project is huge.

Huayou also participated in the Huayue Nickel-Cobalt Project on Sulawesi Island with Qingshan and China Molybdenum Industry. Its filings did not disclose when the latest Weida Bay project began operation.

In a separate document on Sunday, Huayou said it would pay 1.35 billion yuan ($210 million) to Hangzhou Hongyuan Equity Investment Co., Ltd. for a 38.62% stake in Beverm.

Huayou's parent company will also transfer the voting rights of its 24.4 per cent stake in Beverm to Huayou, effectively giving it control over the company it sought to acquire in 2019 before abandoning the plan.