Stellantis, the automotive giant formed from the merger of Fiat Chrysler and PSA Group, is reportedly exploring an investment opportunity in Indonesia’s nickel supply chain. The company is in discussions with mining company Vale and Chinese firm Huayou Cobalt regarding a potential investment in a nickel smelter in Indonesia.
The talks with Vale and Huayou Cobalt signal Stellantis’s commitment to electric vehicles (EVs) and its strategy to secure battery metals for its EV expansion plans. PT Vale Indonesia is known for its nickel mining operations on Sulawesi island, while Huayou Cobalt is a major producer of nickel and cobalt.
The proposed investment would involve a high-pressure acid-leaching plant to convert low-grade nickel ore into battery-grade metal, which could be used in electric vehicle batteries. If successful, this investment would be a significant step for Stellantis towards achieving its €50 billion electrification plan and its goal of achieving net zero carbon emissions by 2038.
Stellantis is not the only automaker eyeing Indonesia’s nickel supply. Tesla has reportedly been engaged in discussions with Indonesia for several years and was said to have signed a $5 billion contract for nickel products from the country in 2022. Additionally, in late 2023, Tesla reportedly visited a nickel plant in Indonesia to explore further investment opportunities.
Ford has also made moves in Indonesia’s nickel industry, announcing a partnership in March 2023 to build a nickel processing facility in the country. The company has invested $4.5 billion in the nickel facility as part of its commitment to securing a stable supply chain for electric vehicle production.
