Chinese new energy battery material producer CNGR Advanced Material Co is planning to jointly build a nickel matte manufacturing facility in Indonesia with Singapore-based Rigqueza International, as per media reports citing a statement by the company.
Nickel matte is an intermediate product that can be processed into battery-grade nickel.
The smelting project worth $243mn will be set up in phases at Tsingshan’s industrial park in Morowali on the Indonesian island of Sulawesi.
The plant is expected to produce 30,000mt of nickel matte per year. In the first phase, the facility will produce 10,000mt per annum and then gradually increase it.
The new project will be called PT ZhongTsing New Energy. CNGR’s wholly-owned subsidiary Zhongwei Hong Kong New Energy will hold a 70pc stake in the company, while Rigqueza will hold the remaining 30pc.
The company said that the demand for nickel in the electric battery sector is expected to remain high and increase in the long term.
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