Huayou Cobalt Commissions First Overseas Battery Precursor Plant in Indonesia

Huayou Cobalt

Huayou Cobalt, a leading Chinese producer of battery metals and materials, has officially launched its first overseas production facility for high-nickel ternary battery precursors in Indonesia. This significant milestone for the company marks its strategic move to expand operations internationally in response to shifting global regulations.

Key Details of the Indonesian Plant

• Location: The plant is located in the Weda Bay Industrial Park in North Maluku province.

• Capacity: Designed for a production capacity of 50,000 t/yr of high-nickel ternary battery precursors.

• Phased Rollout: Construction began in late April 2024, and the first phase is now operational. Specific capacities for each phase have not been disclosed.

This facility, officially named Huaneng, represents Huayou’s first non-FEOC (Foreign Entity of Concern) project in Indonesia.

Strategic Expansion in Battery Metals

Huayou has invested heavily in Indonesian projects over the years, diversifying its production capabilities outside China. The global expansion of Chinese battery firms is partly driven by regulations like the EU's Critical Raw Materials Act and the US Inflation Reduction Act. These laws restrict electric vehicles (EVs) containing battery components from FEOC-linked companies from qualifying for tax incentives, such as the $7,500 EV tax credit in the United States.

Broader Implications

Chinese battery companies are increasingly establishing production facilities in countries like the US, France, Morocco, South Korea, and Indonesia. These moves are designed to reduce geopolitical risks and ensure continued access to key EV markets, which are essential as global demand for electric vehicles accelerates.

Huayou’s new plant solidifies Indonesia’s position as a major hub for battery metals production, leveraging the country’s rich nickel reserves and strategic location in the EV supply chain.