French miner Eramet said on Monday it had decided, along with Germany’s BASF, to cancel a $2.6 billion joint investment project in a nickel-cobalt refining complex in Weda Bay, Indonesia.
“After a thorough evaluation, including discussions about project execution strategy, both partners have decided against this investment,” Eramet said in a news release, without elaborating.
“Eramet will continue to evaluate potential investments in the nickel electric vehicle battery value chain in Indonesia and will keep the market informed in due course”, it added.
In January 2023, Indonesian officials had saidthe French group and BASF were close to finalising a $2.6 billion investment in the production of nickel for use in batteries for electric vehicles. The project was based on resources extracted from Eramet’s mine in Weda Bay.
Eramet had then confirmed negotiations were underway, but said the project was subject to a final investment decision.
(By Alban Kacher; Editing by Angus MacSwan and Mark Potter)
