The flurry of newly announced high-pressure acid leaching (HPAL) projects in Indonesia has intensified competitiveness amid slowing EV sales growth, leading to the termination of two major operations.
The first is the Sonic Bay HPAL joint venture between BASF and Eramet. Initially aiming to construct an HPAL plant producing 67ktpa of nickel and 7.5ktpa of cobalt in mixed hydroxide precipitate (MHP), the project was ultimately scrapped by the partners. Factors contributing to this decision included slowing EV sales growth in Southeast Asia, increased availability of MHP in the market reducing the need for additional investment, and environmental concerns over the impact on an Indigenous tribe's forest habitat.
The second project was Huayou’s Huashan HPAL, which was cancelled for similar reasons. The plant would have had a production capacity of 120ktpa of nickel and 15ktpa of cobalt in MHP, similar to the recently commissioned Huafei HPAL.