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China's CNGR expands nickel investments in Indonesia to meet EV demand

The battery material maker will work with Singapore-based Rigqueza International Pte Ltd to jointly invest in three projects in North Maluku.

 Min Zhang and Meg Shen (Reuters)
Beijing, China
Thu, May 19, 2022

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China's CNGR expands nickel investments in Indonesia to meet EV demand This picture taken on March 30, 2019 shows a worker manning a furnace during the nickel smelting process at Indonesian mining company PT Vale's smelting plant in Soroako, South Sulawesi. (AFP/Bannu Mazandra)

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hina’s CNGR Advanced Material Co Ltd will invest in three new projects in Indonesia to produce nickel matte, aiming to increase annual capacity by 120,000 tons to meet increasing demand for the product used in making electric car batteries.

In a filing to the Shenzhen Stock Exchange, the battery material maker said on Wednesday that three of its Hong Kong units signed agreements with a Singapore-based Rigqueza International Pte Ltd to jointly invest in the three projects in Weda Bay industrial park in North Maluku.

Each involves investment of US$420 million and aims to produce nickel matte with 40,000 tons of nickel content per year via four production lines, the filing said.

Nickel matte is an intermediate product that can be processed into battery-grade nickel.

CNGR had already invested in two nickel matte projects with Rigqueza last year in Sulawesi, with total annual capacity of 60,000 tons. The company also reached agreement with nickel giant Tsingshan Holding Group, which will supply it with 40,000 tons of the product.

“Both parties are continuously optimistic about the nickel matte industry,” CNGR said in the statement, adding that the investments are expected to further secure company’s resources and lower the costs of producing battery materials.

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Registered in Singapore, Rigqueza will own a 30 percent stake in each of the three new projects, CNGR said.

The Chinese company did not disclose more information about its partner, but said Rigqueza’s main responsibilities included coordination with the Indonesian government, helping to secure local approvals and financing.

CNGR could not be contacted for further comment.

Nickel prices on the London Metal Exchange doubled to a record level of over $100,000 a ton within an hour in March as Russia-Ukraine conflict fanned an already rallying market. They eased to around $26,365 per ton on Tuesday.

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