GEM Co Ltd, one of China's largest battery and material recyclers, announced on Thursday a $500 million joint investment to build a nickel project in Indonesia.
According to the company's announcement, the project, sited in Indonesia Morowali Industrial Park, will produce 20,000 tonnes per year of nickel intermediate product used in the new energy sector.
GEM (Wuxi) Energy Materials, a fully owned subsidiary of GEM, will control a 51% stake in the project. Meanwhile, Singapore's CAHAYA JAYA INVESTMENT PTE.LTD and Weiming (Hong Kong) International Holdings Limited will hold 26% and 18% of the shares respectively, according to the company's announcement.
Indonesia's substantial nickel reserves make it an attractive location for developing an ecosystem for electric vehicle (EV) batteries. The nation also boasts reserves of cobalt, another critical element in the production of EV batteries.
In 2022, Indonesia declared its plan to develop an integrated EV supply chain, with the ambitious goal of producing batteries with a capacity of 140 GWh by 2030.
This initiative has attracted notable industry players. German automaker Volkswagen is forming alliances with Vale, a mining company, Ford, and Zhejiang Huayou Cobalt, a Chinese battery minerals producer, to build an EV battery ecosystem in the Southeast Asian country.
Founded in Shenzhen in 2001 and went public in 2010, the company now has a market capitalization of 35.1 billion yuan ($5.05 billion). Last year, it was also listed on the SIX Swiss Stock Exchange through the issuance of GDRs (Global Depositary Receipts).