POSCO to build US$441 mln nickel refining facility in Indonesia

POSCO-Indonesia-nickel factory

POSCO to build US$441 mln nickel refining facility in Indonesia

SEOUL, May 3 (Yonhap) -- POSCO Holdings Inc. said Wednesday it is spending US$441 million to build a nickel refining facility in Indonesia as it pushes to beef up its supply chains of the key secondary battery material.

The factory will be located in the Weda Bay industrial park on the northeastern island of Halmahera and aim to produce nickel matte, an intermediate product for use in making battery-grade nickel, the South Korean steel giant said in a release.

Once it enters commercial operations, the factory will be capable of producing 52,000 tons of nickel intermediates a year, equivalent to powering some 1 million electric vehicles (EVs).

Indonesia is the world's biggest nickel producer and has the largest nickel reserves.

With the project, POSCO said it plans to strengthen the sourcing of EV battery components by expanding investment in nickel mining and refining through potential joint ventures and other forms of partnerships.

POSCO aims to boost its nickel sourcing to 220,000 tons a year by 2030.

POSCO Group is building a domestic high-purity nickel factory in South Korea's southwestern city of Gwangyang, with the supply of nickel ore it has secured from New Caledonia.

It also acquired a 30 percent stake in Ravensthorpe NIckel Corp., an Australian nickel mining company, in 2021.

(END)

(C) Yonhap News Agency. All Rights Reserved