Underscoring Indonesia's leadership in the global energy transition, President Prabowo Subianto in his visit to strengthen Indonesia and China's business collaboration, witnessed the signing of a strategic collaboration between PT Vale Indonesia Tbk ("PT Vale"), and GEM Co., Ltd. in Beijing, China.

The landmark $1.4 billion High-Pressure Acid Leaching ("HPAL") project located in Central Sulawesi ("HPAL Project") will establish an intended net-zero processing sites for nickel, producing at least 60,000 tons of contained nickel in Mixed Hydroxide Precipitate ("MHP") annually an essential component for energy storage system (ESS) batteries. The investment includes development of (i) Research and Development Center of around $ 40 million for transfer knowledge and Indonesia local talent development, (ii) $30 million for an ESG Compound which include green landscape, employee dormitory, domestic water supply and waste treatment, and (iii) $10 million for community development commitment and public facilities.
 
President Prabowo's presence at this event highlights Indonesia's commitment to advancing the green economy and fostering downstream industries that meet global demand for sustainable, high-value MHP. “We in Indonesia and Southeast Asia feel that we want to continue to work together in collaboration and synergy with China’s rise back to a great position in the world. We want to be part of this rise, not only as an economic power but also as part of a strong civilization,” he said.

Therefore, Prabowo said, the Chinese entrepreneurial spirit in Indonesia is an important element in strengthening economic cooperation between the two countries. “We must be an example that this collaboration is the way to go and to be fostered. We welcome and will work hard to provide a good atmosphere for investment to enter Indonesia,” he said. 

Advancing Global and National Goals Through Sustainable MHP Production

Intended to be a net-zero project, this facility will produce MHP presenting combines eco-friendly practices with cutting-edge technology for sustainably processed nickel. By fostering collaboration across international markets, this project reinforces Indonesia's pivotal role in the worldwide shift to cleaner energy solutions.
 
"Our vision for the HPAL Project is to set a new global standard for sustainability in MHP production," said Febriany Eddy, CEO of PT Vale. "This project is not just about producing MHP—it’s about creating a model for responsible resource management that benefits Indonesia and the world. By integrating advanced technology, eco-friendly practices, and a commitment to net-zero production, we are shaping a future where Indonesia is recognized as a leader in sustainable industrial development."

Catalyzing Economic Growth and Empowering Local Communities

Aligned with the Indonesian government's 8% economic growth target, the HPAL Project is designed to generate employment, attract new investments, and stimulate local economic growth in surrounding communities. The project's impact extends beyond production—it is a catalyst for economic activity, helping to uplift local communities while enhancing Indonesia's global reputation as a sustainable industrial powerhouse.

Empowering the Indonesian Workforce Through Innovation and Knowledge Transfer

A cornerstone of the project is the parties' plan to establish a research center focused on advancing HPAL technology, in order to empower Indonesian professionals through technology transfer and skills development. Improving education, skills, and technical capacity will ensure that Indonesian talent is prepared to drive the nation’s next wave of industrial growth.

Setting New Standards in ESG Excellence

The project is intended to be a net-zero MHP processing sites. PT Vale and GEM's dedication to environmental stewardship and sustainable development reflects a shared vision of responsible resource management that aligns with global sustainability standards. This project signals to the world that Indonesia's nickel industry is ready to meet the challenges of the green energy transition while upholding the highest standards of environmental responsibility.
 
Professor Xu Kaihua, Chairman of GEM Co., Ltd., emphasized the global significance of the project: "Vale is a world class ESG company. We are honored to work alongside PT Vale to deliver critical raw materials that align with the global shift toward renewable energy. The HPAL Project represents a vital collaboration that merges our expertise in sustainable materials with Indonesia's rich resources. This project is not only a step toward a cleaner future but a foundation for deeper cross-border cooperation in green innovation. GEM will unite with Vale to apply zero carbon emission, intelligence, high- technology and ESG concepts in designing this project, and create a world class green demonstration park with green nickel resources, local technologies, and local talents, to smelt laterite nickel ore directly into battery material, promote the industrial upgradation of Indonesian nickel resources from traditional stainless steel to new energy, and maintains Indonesia’s global competitiveness in nickel resource. []