Ford Signs Major Nickel Supply Agreement With PT Vale Indonesia & Zhejiang Huayou Cobalt

Ford has signed an agreement with PT Vale Indonesia and China’s Zhejiang Huayou Cobalt Co. to advance more sustainable nickel production in Indonesia. Nickel is a key mineral used in the production of electric vehicle (EV) batteries.

All three companies are making equity investments in the Pomalaa Block High-Pressure Acid Leaching (HPAL) Project in Indonesia.

The project could produce up to 120 kilotons per year of contained nickel in the form of mixed hydroxide precipitate (MHP), a lower-cost nickel product used in EV batteries with nickel-rich cathodes.

Early site preparations have already started, and full construction is expected to start this year, with commercial operations beginning in 2026. 

It is expected to generate 12,000 construction jobs.

Ford’s plan to deliver a 2 million EV production run rate by the end of 2026 and further scale over time.

Lisa Drake, vice president for Ford Model e EV industrialization, says: “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.”

“This agreement shows it’s not just about what we mine – but how we do it,” adds Febriany Eddy, PT Vale Indonesia CEO. “We embed our environmental, social and governance standards into everything we do, and the result is a unique collaboration with global automaker Ford and leading global mineral processor Huayou to jointly invest in this project. This global co-operation is in line with Indonesia’s vision to build a domestic EV ecosystem and makes PT Vale an important contributor toward addressing the world’s decarbonization challenge, with an investment that will generate local economic benefits and ensure the optimal utilization of Indonesia’s nickel resources.”

Dr. George Fang, Senior Vice President of Huayou, comments: “The joint efforts of three parties aims to create a very positive influence on the economy and social development of Indonesia as well as the global EV industry and its supply chain.”  

Ford employs about 176,000 people worldwide.