Chinese state-owned firm, Sinomach, also known as China National Machinery Industry Co, has finalized its plan to build a 80,000 tons ferronickel plant in Indonesia. The engineering, production and construction contract was signed between Sinomach and Indonesia’s PT Antam Niterra Haltim, a unit of miner Antim.
The contract is estimated to be worth USD 74.38 million. The smelting project is seen as only the beginning of the plan of the Chinese company in Indonesia.
Nickel is increasingly an important element in the Indonesia’s Manufacturing scene as it is used to make stainless steel and batteries for electric vehicles. Indonesia has an abundance of nickel laterite ore, the main element to produce lithium batteries. The country is aiming at becoming a global hub for electric vehicles (EVs) production, which use lithium batteries.