China's Two Largest Trichlorosilyl Precursor GiantsHead once again "gathers" in Indonesia, with partners including Vale Indonesia Company (PT Vale Indo)Nesia Tbk's total investment is expected to exceed 29.8 billion yuan, although one has been announced, the other is rumored to seek financing.
Green Beauty$1.42 billion boost
On the evening of November 10th, Greenam (002340) announced that the company, in the presence of the Indonesian President, jointly signed a framework agreement for project investment cooperation with Vale Indonesia. Both parties will collaboratively build a nickel resource high-pressure acid leaching green smelting plant (referred to as the "HPAL plant") in Central Sulawesi, Indonesia. The target production capacity of the plant is 66,000 tons per year of mixed hydroxide precipitation product (MHP), with the expected capital expenditure not exceeding $1.42 billion (approximately 10.29 billion yuan).
Greenco and Vale Indonesia are considering extending downstream operations beyond nickel smelting, aiming to develop a cathode and precursor factory. To implement this project, both parties will establish a project company. The initial equity structure of the project company will be: Greenco and its partners will hold a combined share ofGreensky will introduce potential third-party partners to fill the 70% stake in the project company, as agreed upon by both parties under certain criteria. Greensky's shareholding will not exceed 25%. Market analysts predict that the partner is likely to be a battery manufacturer.
For this collaboration, GreenTech has stated that it will further strengthen the company's green nickel resource development in Indonesia, propel its entry into the global market, defend its market position in the global new energy battery materials sector, and further enhance its core competitiveness and profitability. In fact, Indonesia is a significant asset for GreenTech.Greensky is one of the pioneers. As early as six years ago, Greensky led the $1.3 billion nickel resource project in Indonesia's Qingmei邦, and has continued to increase its investment in recent years. By the end of 2022, it collaborated with two South Korean companies to produce MHP (nickel cobalt hydroxide) in Indonesia. In July and September this year, it announced two additional expansions of the Indonesia nickel project.
As of now, Green America owns...15,000 tons of metal MHP smelting capacity planned, with 65,000 tons (Qingmeibang Nickel Resources Project) already fully operational..Facial production is running smoothly.The 25,000-tonne metal project (our majority-owned Meiming project) was successfully completed as scheduled in October this year, has commenced material feeding and debugging, and has already produced products. The remaining nickel resource projects under construction are also being rapidly advanced, with all expected to be completed and operational by the end of the year. At that time, Greenmax will achieve full self-sufficiency in nickel and cobalt materials based on the established nickel resource capacity, ensuring long-term and stable supply of nickel resources for the company's ternary precursor products, thereby becoming a strong competitive advantage for the company in the new round of global industry competition.
Through the first three quarters of this year, Greenmax has seen a significant release in production capacity, with robust sales and production, and a substantial shipment of ternary cathode precursor.14.3 million tons, an increase of 18.94% year-on-year. Among them, high-voltage, high-nickel, and ultra-high-nickel premium products accounted for more than 90% of the total shipments, with the overall capacity utilization exceeding 95%. On this basis, Greenmax's business performance has reached a new high in the first three quarters of this year, achieving revenue of 24.872 billion yuan, up 22.96% year-on-year; net profit of 0.904 billion yuan, up 65.06% year-on-year; and operating cash flow of 2.052 billion yuan, up 282.19% year-on-year.
Huayou Cobalt may raise funds$2.7 billion
Early reports suggest that Huayou Cobalt is seeking funding for an Indonesian nickel project supported by Ford Motor Company, as reported by several domestic media outlets.$2.7 billion in financing (approximately 19.565 billion RMB), financing applications have been submitted to multiple banks.
The message indicates that HSBC Holdings and Standard Chartered Bank will be responsible for arranging this loan and have invited other banks to participate in the financing. As of now, Huayou Cobalt, HSBC, and Standard Chartered have not commented on the matter.
Huayou Cobalt and Vale Indonesia AnnounceIn 2022, plans were made to jointly invest in the construction of the Pomalaa High Pressure Acid Leaching Wet Process Project (referred to as the "Pomalaa HPAL Project"), followed by the introduction of Ford Motor Company and the signing of the "Definitive Cooperation Agreement".zuiFinally, last year.In March, we officially signed the "Share Subscription Agreement," establishing a tri-party collaboration to invest in the equity of the Pomara HPAL project.
Based on the announcement at the time, Ford Motor Company entered into an agreement with Huayou Cobalt and its affiliated companies.zuiThe final of "The "PCAM Supply Agreement" stipulates that Ford Motor Company will purchase ternary cathode precursor materials from suppliers as per the agreement. The initial term of the agreement is three years, which will automatically renew for another three years unless Ford Motor Company provides written notice of non-renewal at least sixty days prior to the end of the current supply term.
As reported, BomboraThe HPAL project primarily produces nickel hydroxide cobalt, mainly used in the manufacturing of power batteries with rich nickel cathodes. The annual production capacity of the project is expected to reach 120,000 tons, with the total project investment (including the high-pressure acid leach smelter and mine) estimated to be 675 trillion Indonesian Rupiahs. Huayou Cobalt indicated last year that the early preparations for the project have commenced and is expected to enter full operation that year..At the construction phase, to2026 marks the commercial operation launch. In this year's semi-annual report, Huayou Cobalt stated that the preliminary preparatory work for the project is progressing orderly, but no updated timeline has been disclosed. Like Greenome, Indonesia is also one of Huayou Cobalt's key strategic locations, including the Pomala HPAL project. Currently, Huayou Cobalt has invested in and holds stakes in a total of 9 nickel projects in Indonesia, including ternary precursor projects.
This year's first half has seen Huayou Cobalt continuously expand the development advantages of the Indonesian nickel industry, with upstream nickel resource development projects gradually reaching full production, and nickel product shipment volumes increasing.7.6 million tons, up 40% year-on-year; nickel intermediate product shipments were approximately 112,000 tons, up over 90% year-on-year. Consequently, for the first three quarters of this year, Huayou Cobalt achieved total revenue of 45.488 billion yuan, down 10.97% year-on-year; net profit attributable to parents was 3.02 billion yuan, up 0.24% year-on-year; and adjusted net profit attributable to parents was 3.041 billion yuan, up 11.56% year-on-year. Several securities firms had previously predicted Huayou Cobalt's net profit for the full year of 2024 to be around 3.423 billion yuan. With the first three quarters already exceeding 80% of this forecast, it is expected that Huayou Cobalt's full-year performance will exceed market expectations this year.
"Secured" Indonesia
Nickel is a key mineral resource for the world's new energy sector, and Indonesia boasts substantial reserves of nickel ore.13 billion tons, with proven reserves of 6 billion tons, making it a significant supplier of nickel resources globally. However, since Indonesia began banning nickel ore exports in 2020, domesticizing operations has become the priority for global new energy companies in the country..Choose.
Among these, Chinese enterprises take the lead, not only investing in a large number of businesses, but also continuously increasing their investment. Less than a month ago, ...On October 30th, Reuters reported that China's ZW Corp plans to build a $10 billion integrated production facility in Indonesia to produce precursor products at the planned new factory. Overall, "securing" Indonesia's nickel-rich high ground has become a matter of fact, and Chinese enterprises have a first-mover advantage.
