- HPAL project planned with capacity of over 38,000 t/year of contained nickel
- Commercial production scheduled from mid-2027, with ore sourced from Sampala mine
LS MnM, a South Korean non-ferrous metal smelting and refining company, has signed a multilateral equity cooperation agreement for the PT Teluk Metal Industry (TMI) nickel smelting project in Indonesia, marking a significant step in expanding its battery-grade nickel supply chain. The high-pressure acid leaching (HPAL) project is expected to commence commissioning and production in mid-2027, with full design capacity targeted by September 2027.
The project is backed by a consortium comprising LS MnM, Australia-based Nickel Industries, Japan’s Hanwa, Singapore-based Sumber International Investment, and strategic investors across the EV battery supply chain.
HPAL project to produce battery-grade MHP
The TMI project, located in the Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi, will produce nickel-cobalt mixed hydroxide precipitate (MHP) using HPAL technology. The facility has an annual production capacity of 38,640 tonnes (t) of contained nickel, supplying a key intermediate material for electric vehicle (EV) batteries.
Nickel Industries’ attributable production from the project is estimated at around 6,775 t/year of contained nickel.
According to the project partners, the investment strengthens an integrated value chain spanning nickel ore mining, HPAL processing, battery materials, and global downstream markets, while leveraging IMIP’s established nickel and stainless steel production ecosystem.
LS MnM to hold 41% stake
Under the revised ownership structure, the Korea-Japan consortium — including LS MnM, Hanwa, and strategic investors — will collectively hold 72.5% of the project.
LS MnM’s final equity stake has been revised to 41%, down from the initially planned 78%, following the induction of additional investment partners. However, the company’s investment value remains unchanged at $180 million, with the acquisition expected to be completed in November 2026.
Meanwhile, Nickel Industries will invest $169 million to acquire a 17.5% stake, while Sumber International Investment will hold the remaining 10%.
Dedicated ore supply and construction milestones
Nickel Industries’ Sampala mine has been designated as the exclusive nickel ore supplier for the TMI project. Supporting infrastructure, including slurry and tailings pipelines connecting the mine and processing facility, is also planned to ensure stable raw material supply.
The project’s construction cost has been capped at $965 million under a guaranteed engineering agreement, which also requires the plant to achieve full design capacity by September 2027.
Strategic outlook
The TMI project further strengthens Indonesia’s position as a global hub for battery-grade nickel production while expanding LS MnM’s presence in the EV materials value chain. Upon commissioning, the project is expected to enhance the supply of MHP for battery precursor production and support growing demand from the electric vehicle sector. In addition, Japanese trading house Hanwa plans to utilise TMI’s MHP output to strengthen its raw material supply across battery, stainless steel, semiconductor, and aerospace industries.
Note: This article is published as part of a content exchange agreement between SteelDaily and BigMint.
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