Nickel Industries to buy $244m stake in Indonesian EV battery project
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The news: Nickel Industries has unveiled plans to invest USD169 million ($244 million) to acquire a 17.5% stake in Indonesia’s Teluk Metal Industry. The deal will fund the Teluk Metal Industry HPAL project (TMI), effective 26 November, as an expansion to the company’s existing Excelsior Nickel Cobalt (ENC) project.
The context: The expansion builds on the company’s production of mixed hydroxide precipitate (MHP) for the EV battery supply chain, with the TMI project forecasted to attribute around 6,755 tonnes of nickel per annum to the company.
Nickel Industries stated that it will benefit from a comprehensive construction guarantee that caps the total acquisition cost at USD169 million, with project delivery scheduled for September 2027. This provides the company with certainty over both capital expenditure and its production timeline.
Meanwhile, Nickel’s existing HNC high pressure acid leaching (HPAL) operation delivered an adjusted EBITDA margin of USD9,996 per tonne of nickel in the first quarter, outperforming its nameplate capacity by 40%.
What they said: “Securing a 17.5% interest in TMI is a transformative step for Nickel Industries and one of the last opportunities of this scale in the HPAL sector following the Indonesian government’s moratorium on new HPAL projects,” managing director Justin Werner said.
The source: ASX
