Vale Accelerates HPAL Project, Strengthening Indonesia’s Electric Vehicle Supply Chain
Sun 26 Jul 2026, 11:27 AM
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Strong collaboration between businesses, regional governments, and other stakeholders has become the cornerstone of advancing Indonesia's mineral downstream processing projects.
As part of efforts to strengthen that synergy, PT Vale, a member of state mining holding company MIND ID, has recorded several major milestones in its nickel downstream development programme.
Most recently, Vale received the main autoclave component for its Sambalagi High Pressure Acid Leaching (HPAL) facility in Morowali, Central Sulawesi, marking a critical phase in the project's construction. The plant, which comprises three production lines (Lines A, B, and C), is expected to achieve first mechanical completion by the end of 2026.
The milestone underscores Indonesia's commitment to developing a globally competitive, green-based downstream industry while promoting more balanced regional economic growth. The project forms part of the Indonesia Growth Project (IGP) Morowali, one of the country's National Strategic Projects aimed at advancing mineral downstream processing, with a total investment of USD 2 billion.
Mining and energy analyst Ferdy Hasiman said developing High Pressure Acid Leaching (HPAL) facilities has become a strategic necessity for nickel producers rather than merely an option. According to him, companies that fail to invest in downstream projects risk falling behind in the rapidly expanding electric vehicle ecosystem.
"Most mining companies are currently directing their capital expenditure (capex) towards HPAL development because these facilities will become the backbone of the electric vehicle ecosystem. So far, MIND ID, through Vale, has been among the most aggressive in developing such projects," Ferdy said in a written statement received by AKURAT.CO.
He added that the government and Danantara Indonesia have also been actively accelerating downstream development through investment support worth trillions of rupiah. Ferdy said Vale's aggressive expansion has been supported by a management team with extensive experience in developing HPAL projects.
"In addition, several other private nickel companies have not been particularly aggressive over the past two years, most likely because our regulations have changed quite frequently," he added.
The downstream programme focuses not only on increasing the economic value of Indonesia's mineral resources but also on establishing a new benchmark for international collaboration. Strategic partnerships involving Indonesia, South Korea, and China are expected to align with low-carbon environmental governance and social sustainability principles.
Minister of Investment and Downstream Processing and Head of the Investment Coordinating Board (BKPM), as well as Chief Executive Officer of Danantara Indonesia, Rosan Roeslani, said Vale's achievement represents more than the development of an industrial facility, describing it as the creation of a comprehensive and sustainable downstream ecosystem.
"Vale's downstream project sets a new benchmark for international collaboration that aligns with Indonesia's national interests by strengthening resource sovereignty, creating jobs, and generating high value-added products that support the country's Net Zero Emissions agenda," he said.
Efforts to strengthen mineral downstream processing and Indonesia's electric vehicle ecosystem are also expected to generate significant multiplier effects for regions such as Morowali Regency and Central Sulawesi.
Central Sulawesi Vice Governor Reny Arniwaty Lamadjido praised the development of the industrial estate, saying it not only drives economic growth but also places strong emphasis on social development and improving residents' quality of life.
"A collaboration that creates opportunities for local micro, small, and medium-sized enterprises (MSMEs) while remaining open to public facilities represents an inclusive and sustainable model for industrial estate development in Central Sulawesi," she said.
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