By Dominikus
Zhejiang Huayou Cobalt Co., Ltd. has confirmed that its Sorowako High-Pressure Acid Leach (HPAL) project, in partnership with IDX-listed integrated nickel mining firm PT Vale Indonesia Tbk (IDX: INCO), is scheduled to commence construction in 2026, reinforcing its upstream supply chain for battery-grade nickel and cobalt.
"The preliminary work of the Sorowako hydrometallurgical project with an annual output of 60,000 tons of nickel metal in cooperation with Vale Indonesia is progressing steadily and is expected to start construction next year," stated Li Rui, Secretary of the Board at Huayou Cobalt, in a disclosure on the Shanghai Stock Exchange's investor Q&A platform on May 29, 2025.
The project will produce Mixed Hydroxide Precipitate (MHP), a cobalt-containing intermediate widely used in lithium-ion battery production. It complements the company’s Pomalaa HPAL project, developed in collaboration with Vale Indonesia and Ford Motor Company, which commenced construction earlier this year and is slated to be operational by the end of 2026.
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"In 2024, the shipment volume of MHP (nickel cobalt hydroxide) reached about 180,000 tons of nickel metal, including approximately 18,000 tons of cobalt," Li Rui added. "Our existing projects, Huayue and Huafei, have not only achieved stable production but have also exceeded their designed capacities."
Project scope and background
The Sorowako HPAL project will be developed at the PT Indonesia Huali Industry Park (IHIP), located in Luwu Timur, South Sulawesi Province. IHIP was established in June 2023 as a joint venture between Huayou Cobalt, through its subsidiary Huaxing Nickel (Hong Kong) Company Limited (70%), and PT Rimau Java Investama (30%). Later in October 2023, Huayou’s board approved an initial investment of US$50 million to begin IHIP’s construction.
To supply electricity to the industrial park, PT Rimau Elektrik Perkasa, a subsidiary of Rimau, set up PT Green Malili Unity Power and PT Malili Unity Power, aiming to develop power infrastructure dedicated to IHIP.
The Sorowako HPAL project, including associated mining operations, is estimated to require an investment of US$2 billion. According to Zhang Dahui, Vice President of Business Development at Huayou Cobalt, speaking at the Critical Minerals Conference on June 13, the project will feature a designed capacity of 60,000 tons of nickel metal and 6,000 tons of cobalt metal per year. It will encompass an HPAL plant, feed-preparation plant (FPP), port, road infrastructure, and other supporting facilities, with completion and full operation targeted by the end of 2027.
The project is being led by PT Huali Nickel Indonesia, a subsidiary of Huayou Cobalt, in collaboration with IDX-listed PT Vale Indonesia Tbk (IDX: INCO). Huayou is also engaged in broader strategic cooperation with Volkswagen (China) and Tsingshan Holding Group, exploring the development of additional HPAL initiatives in Indonesia.
Huayou’s move underscores its deepening commitment to the Indonesian market and the global transition to electric mobility, by securing long-term, high-grade supply of critical battery materials.
Editing by Reiner Simanjuntak
