Stellantis and indonesia, a win-win-WIN deal
Stellantis Eyes Nickel Smelter Investment
Stellantis is exploring a significant investment opportunity in Indonesia. The automotive giant, known for brands like Maserati, Peugeot, Fiat, and Jeep, is in discussions with Vale and China’s Huayou Cobalt. This potential investment in a nickel smelter aims to secure essential battery metals for its electric vehicle (EV) expansion plans.
Partnership with Vale and Huayou Cobalt
Talks are underway between Stellantis and Vale Indonesia about investing in a high-pressure acid leaching plant. This facility would convert low-grade nickel ore into battery-grade metal, according to sources familiar with the matter. Huayou Cobalt, a leading producer of nickel and cobalt, would also hold a stake in this project, though the exact investment amounts for each company have yet to be determined.
A Win for Indonesia
Should this deal be finalized, it would mark a significant achievement for Indonesia. The country has been eager to attract western carmakers to its nickel industry, which has predominantly been dominated by Chinese companies. These Chinese firms have invested billions into processing the metal crucial for stainless steel and EV batteries.
Stellantis's Ambitious Plans
For Stellantis, this potential investment underscores its commitment to electrification, even as other carmakers scale back their EV plans due to slow adoption rates. Stellantis has announced a €50 billion investment in electrification over the next decade, with the goal of achieving net zero carbon emissions by 2038. The company has also secured offtake agreements with battery material suppliers worldwide.
Responses from Stakeholders
When asked for comments, Stellantis declined. Huayou Indonesia also did not respond to requests for comments. Vale Indonesia, while not commenting on commercial discussions, expressed confidence in the attractiveness of their continued investments to international partners. A spokesperson highlighted the role of these investments in accelerating Indonesia’s ambitions to become an EV hub and advance mineral downstreaming.
Indonesia's Nickel Dominance
Indonesia leads the global nickel market, thanks to its vast reserves and Chinese technology that has reduced production costs. The country accounts for over 50% of global nickel supplies. a share expected to grow as nickel prices fall, impacting miners elsewhere.
Diversifying Market Access
Indonesia is keen to reduce its reliance on China to mitigate any potential downturn in Chinese demand and to expand market access in the US and Europe. Talks are ongoing with other European carmakers, with some considering setting up smelters in Indonesia.
Building an EV Supply Chain
President Joko Widodo’s ban on nickel ore exports in 2020 was a strategic move to attract foreign investment in smelters, battery manufacturing, and eventually EV production. This policy has attracted significant investments from Chinese companies like Tsingshan and CATL, making them major players in Indonesia’s nickel industry.
As Stellantis and other potential investors evaluate their options. Indonesia’s strategic initiatives aim to solidify its position as a key player in the global EV supply chain.