Indonesia nickel plant QMB cuts production after safety checks, sources say

Published: Nov 21, 2025 23:57

Save

QMB New Energy Materials, an Indonesia-based nickel and cobalt joint venture led by China’s GEM, was forced to cut production by at least half after safety inspections by the environmental ministry identified issues with the company’s tailings storage, according to people familiar with the matter. The company’s nickel equivalent output in December 2025 may decrease by as much as 6,000 tonnes, and the reduction could continue into the first quarter of 2026, with the possibility of further declines, one source said. QMB had previously suspended nearly all production in March following a fatal tailings landslide that killed four workers, prompting stricter government oversight of tailings management. Located in the IMIP industrial park on Sulawesi Island, QMB produces mixed hydroxide precipitate (MHP), which contains nickel and cobalt for battery manufacturing, and has an annual production capacity of 96,000 tonnes of nickel equivalent. GEM holds a 63% stake in the venture, with other shareholders including Tsingshan, Brunp (a CATL subsidiary), EcoPro, and Japan’s Hanwa. Earlier, the Indonesian environment ministry ordered IMIP to rectify issues after discovering 12 million tonnes of illegally stored tailings.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

May 15, 2026 22:32

[SMM Analysis] Indonesia's Nickel Benchmark Price Broke Through $18,000 with Strong Momentum, Extreme Weather and Policy Dynamics Intensified Price Divergence

May 15, 2026 22:32

May 15, 2026 19:20

【SMM Analysis】Weekly Review of Indonesian Nickel Market - May 15

May 15, 2026 19:20

May 15, 2026 18:24

SMM 10-12% High-Grade NPI Price Drops to 1,146 Yuan, Indonesian NPI FOB Rises to $147.75 Amid Market Tug-of-War

[SMM Nickel Flash] The average price of SMM 10-12% high-grade NPI fell 4.5 yuan/nickel unit WoW to 1,146 yuan/nickel unit (ex-factory, tax included), while the average Indonesian NPI FOB index price rose 0.97 $/nickel unit WoW to 147.75 $/nickel unit. This week, the high-grade NPI market overall maintained a pattern of fluctuating at highs, with significant divergence between sellers and buyers. Prices edged lower in center amid the tug-of-war between cost support and weak demand, and overall market sentiment remained subdued.

May 15, 2026 18:24