Eramet Signs Nickel Deal with Indonesian Sovereign Funds to Expand EV Battery Ecosystem

Eramet Group

Partnership Targets Integrated Mining and Processing Value Chain in Indonesia

Eramet signs nickel deal with Indonesian sovereign funds to advance a sustainable and integrated electric vehicle (EV) battery raw materials ecosystem in Indonesia. The French mining group signed an initial agreement with Danantara and the Indonesia Investment Authority (INA), both sovereign investment agencies. Together, they aim to identify key projects and develop a roadmap for upstream and downstream EV value chain development.

The partnership will leverage long-term capital from Danantara and INA to finance critical infrastructure, while Eramet will lead the mining and processing operations. These projects will align with global environmental and social standards. This strategic collaboration comes as Indonesia strengthens its position as a hub for nickel-based EV battery materials, particularly amid global supply chain diversification efforts.

Eramet already holds a 38.7% stake in PT Weda Bay Nickel in partnership with China’s Tsingshan Group, producing nickel and ferronickel. The company has expressed plans to expand its nickel operations in Indonesia by acquiring new mining permits. However, with the Indonesian government tightening permit issuance, partnerships with state-backed investors offer Eramet a pathway to secure strategic access. As Eramet signs nickel deal with Indonesian sovereign funds, it reinforces Indonesia’s emergence as a global center for battery metals.

The Metalnomist Commentary

Eramet’s alliance with Indonesian sovereign funds highlights a growing trend: securing nickel supply through vertically integrated, ESG-compliant partnerships. As Indonesia tightens mining access, collaboration with state capital becomes essential for companies seeking long-term footholds in EV-critical materials.