POSCO Holdings to build nickel refinery plant in Indonesia to meet EV demand

[Photo by Lee Chung-woo]

POSCO Holdings Inc., parent of South Korea’s biggest steelmaker, is set to become the first Korean company to produce nickel, a critical material for secondary batteries used in electric vehicles (EVs), in Indonesia.

POSCO Holdings announced Wednesday that it will build a nickel refining plant in Indonesia, the world’s largest nickel reserve and producer.

Nickel is considered a key material that determines the capacity and function of battery-powered vehicles. Demand for nickel has been on a rise amid growing popularity of EVs.

POSCO Holdings will invest $441 million and launch construction by the end of this year with an aim to begin commercial production in 2025.

At nickel refining plants, nickel-containing ore bodies are processed into nickel matte, or nickel intermediate materials, necessary for secondary batteries.

The new plant - with a production capacity of 52,000 tons of nickel matte - will be located inside the Weda Bay Industrial Park on Halmahera Island in Indonesia.

The output is enough to produce one million EVs.

“We will solidify our position as a leading green materials manufacturer through successful outcomes in core business projects involving secondary battery materials, such as lithium and nickel,” said an unnamed official from POSCO Holdings.