Ford Motor Co F on Thursday announced an agreement with Indonesian mining company PT Vale Indonesia Tbk and Chinese mineral supplier Zhejiang Huayou Cobalt Co.
What Happened: Under the new agreement, Vale Indonesia, Huayou Cobalt and Ford will make equity investments in the Pomalaa Block High-Pressure Acid Leaching (HPAL) Project in Southwest Sulawesi, Indonesia.
The project could produce up to 120 kilotons per year of contained nickel, the companies said in a combined statement.
Vale Indonesia will provide ore for the project from its Pomalaa Block mine. The ore will then be processed to make a mixed hydroxide precipitate used in EV batteries.
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While early site preparations have already commenced, construction will commence this year. Commercial operations are expected to start in 2026.
“Our investment in the Pomalaa Block for mines and HPAL facilities is $ 4.5 billion,” Vale Indonesia says on its website.
A supply agreement is currently under the making with Ford and Huayou for a material employed in battery-making. The new project and the supply agreement together will help Ford meet its EV production targets by 2026 end, the statement said.
Price Action: Shares of Ford closed at $12.055 on Wednesday and added 0.04% in extended trading, according to Benzinga Pro data.
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