JAKARTA, Indonesia’s sovereign wealth fund Danantara announced Wednesday that it has signed a Head of Agreement with Shenzhen-based GEM Limited to jointly develop a High-Pressure Acid Leach (HPAL) smelter with an annual production capacity of 66,000 tons of nickel. The project is valued at around $1.42 billion.
GEM, a global leader in green metallurgy and circular economy solutions, is well known for large-scale recycling of electric vehicle (EV) batteries and electronic waste.
Danantara CEO Rosan Roeslani said the partnership represents a major step in supporting Indonesia’s socio-economic transformation. “By working with a global pioneer in green metallurgy, we can help advance the government’s agenda for sustainable downstream mineral industrialization,” he said. The project is also expected to involve Vale Indonesia and other international partners.
Each year, GEM processes more than 10% of China’s used EV batteries and e-waste, with a workforce of over 11,000 employees across China, South Africa, South Korea, and Indonesia. In Indonesia, the company has already invested in nickel-based new energy materials, industrial parks, research labs, and scholarship programs to develop metallurgical talent.
GEM has also contributed $30 million to a joint research laboratory with the Bandung Institute of Technology (ITB), aimed at strengthening Indonesia’s role as a regional hub for green metallurgy innovation and R&D.
