China-based Lygend Resources and Technology Co Limited has begun trial production at its nickel and cobalt project in Indonesia, as per media reports citing a statement by the company.
The plant is located on Obi Island and is one of the few Chinese high-pressure acid leach (HPAL) projects for processing nickel ore in Indonesia.
The company is expected to produce 30,000mt-37,000mt of mixed hydroxide precipitate (MHP) per annum by the second half of 2021.
The mixed hydroxide precipitate (MHP) contains both nickel and cobalt and is used in electric vehicle (EV) batteries.
The plant will supply the MHP to Chinese battery material makers GEMCo and Beijing Easpring.
Lygend operates the project with Harita Group. It has planned to commission the plant in 2929 but had to postpone it due to the COVID-19 outbreak.
The company is also planning to start another plant in Indonesia to produce nickel Pig iron that is used for steel production by mid-2022 with an annual capacity of 80,000mt-85,000mt.