The Zhitong Finance App learned that according to the Financial Times on Tuesday, Stellantis (STLA.US) is in talks with VALE.US (VALE.US) and China Huayou Cobalt (603799.SH) to invest in a nickel smelter in Indonesia to ensure the battery metal supply critical to its electric vehicle expansion plans; financial details are still unclear.
Although Ford Motor Company (F.US) agreed to invest 4.5 billion US dollars with Vale and Huayou Cobalt to build a high-pressure acid leaching plant in Indonesia last year, US and European companies generally lag behind their Chinese peers in securing the supply of critical minerals.
Stellantis's investment will be a key victory for Indonesia. Indonesia's domestic nickel industry has always been dominated by Chinese companies, and the country has been working hard to attract Western car manufacturers into this industry.
According to information, Indonesia dominates the global nickel market and accounts for more than half of the world's nickel supply. Furthermore, as weak nickel prices force miners from other countries to cut production, Indonesia's nickel market share is expected to increase.