BNSI Commences Construction of World's Largest HPAL Facility in Morowali

PT Bahodopi Nickel Smelting Indonesia (BNSI) has officially commenced the main construction phase of its nickel processing project with the installation of the latest generation High Pressure Acid Leach (HPAL) autoclave. The project is expected to strengthen national nickel downstreaming while supporting the development of the electric vehicle battery industry in Indonesia. BNSI is a joint venture between South Korea’s EcoPro, China’s GEM Co., Ltd., and Indonesia’s PT Vale Indonesia Tbk, located in the International Green Industrial Park (IGIP) in Morowali, Central Sulawesi. With an investment value of approximately US$1.845 billion, the project has a production capacity of 90,000 tonnes of Mixed Hydroxide Precipitate (MHP) per year, a key raw material for EV batteries. As a National Strategic Project (PSN) that has also obtained Bonded Zone status, BNSI is expected to increase the added value of Indonesia’s mineral resources and strengthen the country’s position in the global EV battery supply chain. The HPAL autoclave being installed has a capacity of 1,268 cubic metres, making it the largest ever applied in an HPAL facility worldwide. This latest-generation technology is designed to increase processing capacity, energy efficiency, and production process stability, supporting more productive operations with lower emissions. Construction is targeted for completion by the end of 2026, with commercial operations scheduled to begin in the first quarter of 2027. GEM Co., Ltd. Chairman Professor Xu Kaihua stated that the construction of BNSI is evidence of strategic collaboration between Indonesia, South Korea, and China in building an integrated low-carbon nickel industrial ecosystem. ‘BNSI is a manifestation of strategic collaboration between Indonesia, South Korea, and China in building the world’s first zero-carbon nickel industrial area. By combining Indonesia’s resources, GEM’s technology, and EcoPro’s battery industry advantages, we aim to support the acceleration of the global energy transition,’ said Professor Xu Kaihua. He added that once operational, BNSI is projected to generate export value of approximately US$1.5 billion per year, create around 5,000 new jobs, and supply enough nickel raw materials for approximately 3 million electric vehicles annually. Together with its partners, GEM is also committed to developing IGIP as a world-class green industrial area that integrates new energy industries, smart manufacturing, a circular economy, and an environmentally friendly metallurgical technology innovation centre. Minister of Investment and Downstreaming/Head of BKPM and Head of BPI Danantara Indonesia, Rosan Roeslani, said that the construction of BNSI demonstrates Indonesia’s downstreaming transformation, which is no longer focused on processing raw materials but on building an integrated EV battery industry value chain. ‘The green industrial cluster we are building starts with HPAL as the first gateway, then continues to nickel sulphate, precursors, cathode active materials, and EV batteries. This is Indonesia’s transformation in creating added value and strengthening national industrial competitiveness,’ said Rosan. He added that the construction of BNSI was designed from the outset to prioritise sustainability principles. The HPAL facility is being developed towards Net Zero Emissions through the utilisation of waste heat recovery systems and solar energy. In addition, the company has realised social investment of approximately US$8.5 million for the Sambalagi community and built an HPAL Research Centre worth US$37 million to support the development of technology, innovation, and Indonesian talent in the field of metallurgy. Through collaboration between Indonesia, South Korea, and China, BNSI is expected to become a key foundation in strengthening the EV battery industry ecosystem in Indonesia. The presence of this project not only increases the added value of national mineral resources and strengthens Indonesia’s position in the global supply chain, but also encourages technology transfer, creates quality jobs, and supports the development of a competitive and sustainable green industry.