Ford-backed Ni plant seeks $2.7B in financing

Zhejiang Huayou Cobalt Co. is scouting out banks seeking around $2.7 billion in financing for a Ford-baked nickel plant project in Indonesia. 

Huayou, Ford, and Indonesian miner PT Vale collaborated to make battery-grade nickel for electric vehicles. China-based Huayou is working with HSBC Holdings Plc and Standard Chartered Plc to arrange the $2.7 billion loan. Bloomberg sources stated that HSBC and Standard Chartered are inviting other banks to finance Huayou and Ford’s battery-nickel facility in Southeast Sulawesi. 

Indonesia is responsible for over half of the world’s nickel output, putting it in a strong position for negotiations with automakers. The Indonesian government has been wooing foreign investors to expand its domestic processing industry. Besides Ford, Tesla and Stellantis have considered investments in Indonesia to secure nickel supplies.

In 2023, Ford announced a partnership with two other entities to construct a nickel processing facility in Indonesia. 

“This framework gives Ford direct control to source the nickel we need – in one of the industry’s lowest-cost ways – and allows us to ensure the nickel is mined in line with our company’s sustainability targets, setting the right ESG standards as we scale.

“Working this way puts Ford in a position to help make EVs more accessible for millions and to do it in a way that helps better protect people and the planet,” said Lisa Drake, VP of Ford Model e EV industrialization. 

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