MIND ID Accelerates $2 Billion Nickel Downstream Project in Morowali
The development of the High Pressure Acid Leaching facility in Sambalagi, Morowali, Central Sulawesi, continues to be accelerated by PT Vale Indonesia in order to strengthen the national electric vehicle ecosystem. The project, part of the Indonesia Growth Project Morowali valued at approximately US$2 billion, is scheduled to reach first mechanical completion by the end of 2026, as reported by Money on Saturday (25/7/2026).
The high-tech nickel processing facility, owned by a member of the Indonesia Mining Industry Holding MIND ID, is designed with three production lines. The arrival of its key component, the autoclave, marks significant progress in efforts to increase mineral added value and expand the domestic battery industry supply chain.
The Minister of Investment and Downstreaming/Head of BKPM and CEO of Danantara Indonesia, Rosan Roeslani, affirmed the strategic importance of this step for national resource sovereignty.
“Vale’s downstreaming project sets a new standard in international collaboration aligned with the national interest, namely building resource sovereignty, opening up employment, and creating high added value that supports the Net Zero Emissions agenda,” said Rosan Roeslani, Minister of Investment and Downstreaming/Head of BKPM.
Rosan added that accelerating downstreaming through the development of nickel-based industrial estates is an important part of the government’s strategy to support the energy transition. The development of the processing sector is also expected to deliver a direct economic impact for local communities through job creation and the strengthening of micro, small and medium enterprises around the industrial area.
Support for this downstreaming step was also expressed by mining and energy observer Ferdy Hasiman.
“Most mining companies’ capital expenditure is currently indeed directed towards building HPAL because this facility will become the backbone of the electric vehicle ecosystem. So far, MIND ID through Vale is among the most aggressive in developing this project,” said Ferdy Hasiman, mining and energy observer.
Ferdy explained that consistent investment in nickel processing facilities is crucial to maintaining Indonesia’s competitiveness in the global market.
“Several private nickel companies have indeed not been particularly aggressive over the past two years, possibly influenced by regulatory dynamics. Therefore, the continuity of downstreaming projects is important to maintain investment momentum,” said Ferdy Hasiman.
The existence of this downstreaming project is believed to be capable of absorbing significant local employment while encouraging the growth of a domestic supply chain involving local businesses in Central Sulawesi.