Antam announced it hopes the head of agreement (HoA) for the two downstream nickel projects could be signed soon.

For the production of the cathodes, which would be used in the manufacturing an electric vehicle (EV) batteries, Antam is to cooperate with a private cobalt supplier, Zhejiang Huayou Cobalt Company Ltd., Antam president director Arie Prabowo Ariotedjo said. He estimated the cathode project would require an investment of between US$6 billion and $12 billion.

Arie said that Antam’s parent company Inalum woud also participate in the cathode project while state energy holding company Pertamina was expected to be involved in incorporating the cathodes into EV batteries.

“This project [with Huayou] is aimed at processing first-class nickel to be used for EV batteries. We hope to sign the HoA with the Chinese firm this month and then follow that with a joint-venture agreement three months after,” he said on Monday.

Arie said two plants would process nickel ore to make cathodes. One would be located at Antam’s nickel mine in Tanjung Buli, East Halmahera and another at its nickel mine in North Konawe, Southeast Sulawesi. Arie said that the two locations were picked because of their proximity to their nickel resources.

Meanwhile, in the second deal, Antam is to cooperate with a Chinese nickel and pig iron producer, Shandong Xinhai, to build a ferronickel plant on Gag Island in Papua. This project would require an investment of about $1.2 billion.