Chinese firms commit 35 billion USD investment in Indonesia’s nickel processing hinh anh 1Activities at a nickel mining site in Indonesia (Photo: Jakartapost)

Jakarta (VNA) – Chinese investors are seeking to expand their business in Indonesia by doubling their investment in nickel processing to 35 billion USD by 2033.

Chinese steel and battery companies operating in Indonesia met with the country’s Coordinating Minister for Maritime and Investment Affairs Luhut Pandjaitan during his recent visit to China’s Yunnan province, the minister’s spokesman Jodi Mahardi said.

Among the projects discussed was a plan by China’s Contemporary Amperex Technology Co Ltd and Ningbo Lygend Mining Co to create an integrated lithium battery production facility. This would be their largest facility in the world.

The companies, along with others including Tsingshan Holding Group and Delong Holdings, currently have around 16 billion USD invested in Indonesia. The four firms made a commitment to increasing their collective investment to around 20.9 billion USD by 2024, and some 35 billion USD by 2033.

They will collaborate with investors from France, Japan, Republic of Korea, Australia and other countries, Jodi said.

Indonesia, a major nickel ore producer, is keen to expand as a nickel processing hub, starting from steel, to extracting battery grade chemicals from the ore, and eventually producing batteries for electric vehicles (EVs) and building EVs.

A group of Indonesian state-owned companies are planning to form a venture to make batteries for EVs, the chief executive of Mining Industry Indonesia said, and the new company would partner with Chinese and Korean firms on projects valued at 12 billion USD.

Indonesia was the largest nickel ore exporter until it stopped exports in January to ensure there were enough raw materials for investors to use in the country./.