Latest news with #Huayou
Yahoo
22-07-2025
- Business
- Yahoo
Zimbabwe lithium exports soar 30% in H1 2025, defying price slump
Zimbabwe has reported a 30% surge in spodumene concentrate exports in the first half of 2025, despite a significant drop in global lithium prices, reported Reuters, based on statistics from the Minerals Marketing Corporation of Zimbabwe (MMCZ). The country, Africa's leading lithium producer, exported 586,197 tonnes (t) of the lithium-bearing mineral between January and June, compared to 451,824t during the same period in the previous year. Prices of lithium, a critical component of renewable energy technology batteries, have plummeted by nearly 90% over the past two years, primarily due to oversupply. However, producers remain optimistic about the long-term prospects of the metal, given the global shift towards cleaner energy and electric vehicles. MMCZ said: "A notable market contradiction was observed in the lithium sector, where prices declined despite a continuous rise in demand for lithium metal." The prices are expected to improve in the medium term. Chinese companies such as Zhejiang Huayou Cobalt, Sinomine, Chengxin Lithium Group, Yahua Group and Tsingshan hold a dominant position in Zimbabwe's lithium mining industry. These companies have collectively invested more than $1.4bn (10.05bn yuan) since 2021 to acquire and develop lithium assets in the country, as per MMCZ. Last month, Reuters reported that Zimbabwe plans to ban the export of lithium concentrates, starting from 2027, to encourage local processing. Huayou, which exported 400,000t of lithium concentrate from Zimbabwe in 2024, has commenced the construction of a lithium sulphate plant within the country, with an annual capacity of 50,000t. Similarly, Sinomine has revealed its intention to construct a $500m lithium sulphate plant at its Bikita mine in Zimbabwe. Lithium sulphate is an essential intermediate product that can be refined into battery-grade materials such as lithium hydroxide or lithium carbonate, which are crucial in battery manufacturing. "Zimbabwe lithium exports soar 30% in H1 2025, defying price slump" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
27-04-2025
- Automotive
- The Star
Jakarta's flip-flops stall investment, say analysts after LG pulls out of US$8.45bil nickel plan
JAKARTA: The decision by South Korean company LG to exit a US$8.45 billion plan to build an electric vehicle (EV) battery supply chain in Indonesia has sparked debate over Jakarta's inconsistent policies and slow decision-making. LG Energy Solution, the world's third largest EV battery maker, disclosed its decision on Monday (April 21), citing 'market conditions and investment environment'. LG had led the consortium that was meant to develop a nickel mine, build smelters and construct a battery cell plant in Karawang, West Java, under a memorandum of understanding signed with Indonesia in December 2020. Indonesia holds the world's largest nickel reserves. Some industry observers have described LG's move as a setback in Indonesia's plans to build an EV ecosystem and its ambitions to develop downstream industries around its mineral resources. But the government has insisted the mega project is on track. On April 23, Energy and Mineral Resources Minister Bahlil Lahadalia said development and production would continue as planned, with China's Zhejiang Huayou Cobalt as the new lead company. 'There is no change in our plan to make Indonesia a global EV production base,' Bahlil said. On the same day, Investment Minister Rosan Roeslani said it was the Indonesian government that had decided to terminate the partnership with LG on Jan 31, after years of stalled negotiations. Questions have arisen over the surprise entry of Huayou, and whether LG pulled out or was ejected by the government. Industry analyst Fabby Tumiwa said the Indonesian government should explain what had really happened behind the scenes, and its reasons for selecting Huayou, which makes EV battery raw materials. 'For the sake of public accountability and transparency... we need to know what really was going on and what basis was used to go with Huayou, after spending long years of negotiation with a different party,' Fabby told The Straits Times. At a forum in Parliament on April 24, economist Drajad Wibowo explained that five years ago, LG and its partners were invited by the government to invest in the EV battery project. This was in anticipation of South Korean carmaker Hyundai launching its Ioniq EV, which uses nickel-based batteries and is produced locally, in 2022. But the government unexpectedly introduced a new policy in early 2024 that exempted imported EVs from tariffs for two years. This led to the quick entry of other EV brands, including China's BYD, which ate up the market share of Hyundai and others that had invested in building assembly plants in Indonesia. BYD cars use batteries powered by cheaper iron phosphate, a mineral that is not abundant in Indonesia. The Indonesian government had also offered BYD reductions on luxury goods tax normally imposed on vehicles with a high price tag, said Drajad. 'With the same specifications, the price of an Ioniq car is about 50 to 60 per cent above the BYD car here,' Drajad told the forum, pointing out that the Ioniq's market share in Indonesia has been on the decline. Data from Indonesia's automaker association showed that EVs comprised 12.46 per cent of Indonesia's total new vehicle sales of 70,892 in March. BYD had the lion's share of sales that month at 54 per cent, followed by other Chinese makes Wuling (13.6 per cent) and Cherry (11.2 per cent). Hyundai falls outside the top five selling brands, with just 3 per cent of total EV sales. Analysts also point the finger at slow processes and indecision at Indonesia's state-owned enterprises (SOEs), which usually partner foreign investors and take a stake in these projects. Such management indecision is partly caused by previous cases in which SOE executives have been prosecuted for losses arising from the usual course of business, and received sentences akin to those meted out for fraud, financial mismanagement or abuse of power. The law was amended only in February to shield directors from personal liability for decisions 'made in good faith and with reasonable care'. 'In the state audit, they look at past losses. It is a short-term view. They don't think about opportunity losses that could be even bigger in the long term when SOE executives do not do anything,' analyst Ali Ashat of the Bandung Institute of Technology told ST. On the heels of the LG decision, the world's largest battery maker CATL was reported to be scaling back on its Indonesian EV battery project. It will slash more than half of its planned US$6 billion investment due to weak global demand and shifting market projections, according to an April 23 report by CATL was allowed to buy about half of a large nickel mine in North Maluku province in December 2023, on the condition that it invests in building processing facilities to turn nickel ore into intermediate products and EV battery cells. CATL has started building a battery cell plant in Karawang and expects to complete it by mid-2026. Nurul Ichwan, a deputy minister in charge of promotions at the Investment Ministry, told that the government and CATL are discussing how the Chinese company should adjust its funding, taking into account how many years it would take to recover its investment. 'We understand the new calculations (on investment spending) would remain promising,' Ichwan said, adding that latest developments showed global EV demand is not as strong as expected. - The Straits Times/ANN
Straits Times
27-04-2025
- Automotive
- Straits Times
Indonesia's flip-flops and indecision stall investment say analysts, after LG pulls out of $11b nickel project
Data from Indonesia's automaker association showed that EVs comprised 12.46 per cent of Indonesia's total new vehicle sales of 70,892 for March. PHOTO: AFP Indonesia's flip-flops and indecision stall investment say analysts, after LG pulls out of $11b nickel project JAKARTA -- The decision by South Korean company LG to exit a US$8.45 billion (S$11.1 billion) plan to build an electric vehicle battery supply chain in Indonesia has sparked debate over Jakarta's inconsistent policies and slow decision-making . LG Energy Solution, the world's third largest EV battery maker, disclosed its decision on April 21, citing 'market conditions and investment environment'. LG led the consortium that was meant to develop a nickel mine, build smelters and construct a battery cell plant in Karawang, West Java, under a memorandum of understanding signed with Indonesia in Dec 2020. Indonesia holds the world's largest nickel reserves. Some industry observers have described LG's move as a setback to Indonesia's plans to build an EV ecosystem, and its ambitions to develop downstream industries around its mineral resources. But the government has insisted the mega project is on track. On April 23, Energy and Mineral Resources Minister Bahlil Lahadalia said development and production would continue as planned, with China's Zhejiang Huayou Cobalt as the new lead company. 'There is no change in our plan to make Indonesia a global EV production base,' Mr Bahlil said. On the same day , Investment Minister Rosan Roeslani said that it was the Indonesian government who had decided to terminate the partnership with LG on Jan 31, after years of stalled negotiations. Questions have arisen over the surprise entry of Huayou, and whether LG pulled out or was ejected by the government. Industry analyst Fabby Tumiwa said the Indonesian government should explain what had really happened behind the scenes, and its reasons for selecting Huayou, which makes EV battery raw materials. 'For the sake of public accountability and transparency… we need to know what really was going on and what basis was used to go with Huayou, after spending long years of negotiation with a different party,' Mr Fabby told The Straits Times. At a forum in Parliament on April 24, economist Drajad Wibowo explained that five years ago, LG and its partners were invited by the government to invest in the EV battery project. This was in anticipation of South Korean carmaker Hyundai launching its Ioniq EV, which uses nickel-based batteries and is produced locally, in 2022. But the government unexpectedly introduced a new policy in early 2024 that exempted imported EVs from tariffs for two years. This led to the quick entry of other EV brands, including China's BYD, which ate up the market share of Hyundai and others that had invested in building assembly plants in Indonesia. BYD cars use batteries powered by cheaper iron phosphate, a mineral that is not abundant in Indonesia. The Indonesian government had also offered BYD reductions on luxury goods tax normally imposed on vehicles with a high price tag , said Mr Drajad. 'With the same specifications, the price of an Ioniq car is about 50 to 60 per cent above the BYD car here,' Mr Drajad told the forum, pointing out that the Ioniq's market share in Indonesia has been on the decline. Data from Indonesia's automaker association showed that EVs comprised 12.46 per cent of Indonesia's total new vehicle sales of 70,892 for March. BYD had the lion's share of sales that month at 54 per cent, followed by other Chinese makes Wuling (13.6 per cent) and Cherry (11.2 per cent). Hyundai falls outside the top five selling brands, with just 3 per cent of total EV sales. Analysts also point the finger at slow processes and indecision at Indonesia's state-owned enterprises, which usually partner with foreign investors and take a stake in these projects. Such management indecision is partly caused by previous cases in which SOE executives have been prosecuted for losses arising from the usual course of business, and received sentences akin to those meted out for fraud, financial mismanagement or abuse of power. The law was only amended in February to shield directors from personal liability for decisions 'made in good faith and with reasonable care'. On the heels of the LG decision, the world's largest battery maker CATL was reported to be scaling back on its Indonesian EV battery project. It will slash more than half of its planned US$6 billion investment due to weak global demand and shifting market projections, according to an April 23 report by CATL was allowed to buy about a half of a large nickel mine in North Maluku province in December 2023, on condition it invests in building processing facilities to turn nickel ore into intermediate products and EV battery cells. CATL has started building a battery cell plant in Karawang and expects to complete it by mid- 2026 . Mr Nurul Ichwan, a deputy minister in charge of promotions at the Investment Ministry, told that the government and CATL are discussing how the Chinese company should adjust its funding, taking into account how many years it will take to recover its investment. 'We understand, the new calculations (investment spending) would remain promising,' Mr Ichwan said, adding that latest developments showed global EV demand is not as strong as expected. Wahyudi Soeriaatmadja has been Indonesia correspondent at The Straits Times since 2008, and is based in Jakarta Join ST's Telegram channel and get the latest breaking news delivered to you.
The Star
24-04-2025
- Automotive
- The Star
President Prabowo shrugs off LG pulling out from battery investment
JAKARTA: President Prabowo Subianto (pic) said on Tuesday (April 22) that there was no reason to be concerned about LG Energy Solution's (LGES) decision to withdraw from a Rp 142 trillion (US$8.45 billion) project to develop electric vehicle battery making in Indonesia. Prabowo told reporters that Indonesia is a big country with a bright future and there would be new investment to take the place of the South Korean company in the EV battery ecosystem. "Of course [there will be new investment]. Indonesia is a big country. Indonesia's [future] is bright," President said with a chuckle. READ ALSO: Indonesia says China's Huayou to replace LGES in EV battery project LGES and the government signed a deal on the so-called Indonesia Grand Package project in late 2020, which includes investments across the EV battery supply chain in the country. "Taking into account various factors, including market conditions and investment environment, we have agreed to formally withdraw from the Indonesia GP [Grand Package] project," LGES said in a statement. Indonesia will continue to seek foreign investors to partner with local companies to develop the battery industry, leveraging the country's rich nickel reserves, an official at the Energy and Mineral Resources Ministry has said. "Even though LG has exited, Indonesia remains convinced our nickel is more competitive than other countries," the director general for mineral and coal development told reporters. Indonesian state-owned miner Aneka Tambang, which had planned to form a JV with LGES to mine nickel, said it remained committed to working with other companies to supply nickel for battery production. - The Jakarta Post/ANN
The Star
23-04-2025
- Business
- The Star
Indonesia says China's Huayou to replace LGES in EV battery project
Indonesia's energy minister Bahlil Lahadalia gestures while delivering his speech during a signing ceremony for a Memorandum of Understanding (MoU) concerning renewable and clean energy and energy conservation, in Jakarta, Indonesia April 21, 2025. - Photo: Reuters file JAKARTA: China's Zhejiang Huayou Cobalt is replacing South Korea's LG Energy Solution as a strategic investor in a multibillion-dollar project to build an electric vehicle battery joint venture in Indonesia, officials said on Wednesday (April 23). The South Korean company, which was part of a consortium that signed a 142 trillion rupiah ($8.4 billion) "Grand Project" in 2020, announced its withdrawal from the project this week, citing factors including market conditions and the investment environment. Energy and Mineral Resources Minister Bahlil Lahadalia said LG Energy Solution's decision would not significantly affect the project, which aims to establish a local electric vehicle battery value chain in Indonesia. "Changes only occur at the investor level, where LG no longer continue its involvement... and has been replaced by a strategic partner from China, namely Huayou," Bahlil said in a statement. "Nothing has changed from the initial goal, namely making Indonesia as the center of the world's electric vehicle industry." Indonesia, home to the world's largest nickel reserve, has been seeking to position itself as a key player in the global electric vehicle supply chain by leveraging its vast reserve of the critical mineral to attract investments. The government decided not to move forward with the South Korean company in the project due to the long negotiation process with the firm to realise its investment, Investment Minister Rosan Roeslani said. Rosan cited Huayou's familiarity with Indonesia as one of the reasons why the government chose the company to succeed LG Energy Solution. "Huayou had invested in Indonesia," Rosan said. "They have sources to develop the industry going forward." LG Energy Solution said in a statement on Tuesday that it will continue to explore "various avenues of collaboration" with the Indonesian government, including in its battery joint venture. HLI Green Power, a joint venture between LG Energy Solution and Hyundai Motor Group, operates Indonesia's first electric vehicle battery plant, which was launched in 2024 with a production capacity of up to 10 Gigawatt hours (GWh) of cells annually. - AFP
