F - Ford inks multi-billion dollar nickel production deal

2023-03-30 06:43:53 ET

Ford ( NYSE: F ) announced an agreement with both PT Vale Indonesia Tbk ( OTCPK:PTNDF ) and China’s Zhejiang Huayou Cobalt Co. to invest a total of $4.5B in nickel production in Indonesia.

According to the terms announced on Thursday, each company has agreed to make an an equity investment in the Pomalaa Block High-Pressure Acid Leaching (HPAL) Project. The project will process ore provided by PT Vale Indonesia ( OTCPK:PTNDY ) and aims to produce up to 120 kilotons per year of contained nickel for EV battery production.

“This framework gives Ford direct control to source the nickel we need – in one of the industry’s lowest-cost ways – and allows us to ensure the nickel is mined in line with our company’s sustainability targets, setting the right ESG standards as we scale,” Lisa Drake, vice president for Ford Model e EV industrialization, commented. “Working this way puts Ford in a position to help make EVs more accessible for millions and to do it in a way that helps better protect people and the planet.”

Full construction of the plant is due to start this year with commercial operations due to commence in 2026. The total investment between the three companies is slated to reach rupiah 67.5 trillion ($4.49B) and is expected to generate 12,000 construction jobs in Indonesia.

Read more on a new agreement between the US and Japan for EV battery supplies .

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