JAKARTA, Sept 13 (Reuters) - Nickel miner PT Vale Indonesia on Tuesday signed an agreement with China's Zhejiang Huayou Cobalt to build a second high-pressure acid leach (HPAL) plant to produce nickel material used in batteries to power electric vehicles. Under the heads of agreement, Vale and Huayou plan to build an $1.8 billion HPAL plant in Sorowako, South Sulawesi, to produce 60,000 tonnes of nickel in mixed hydroxide precipitate (MHP), chief executive Febriany Eddy told reporters.

Vale in April had also signed a deal with Huayou to develop an HPAL plant in Pomalaa, Southeast Sulawesi, to produce 120,000 tonnes of MHP. U.S. carmaker Ford Motor Co. later joined the partnership for this plant. Similar to the agreement for Pomalaa, Huayou would also build the plant in Sorowako with Vale reserving the rights to buy stake at the plant, chief financial officer Bernardus Irmanto added. Febriany said a final investment decision (FID) for the Pomalaa plant is expected by the end of this year and a FID for Sorowako to follow next year. Construction of each plant would take around three years at the most, she said. "These are strategic projects for Vale because they will produce MHP, which is a material for electric car batteries," Febriany added. Indonesia is keen to utilise its rich nickel reserves to attract investment into metal processing, production of electric vehicle battery material and ultimately building EVs in the country.

(MHP) Sorowako, $1.8 bln Zhejiang Huayou 60,000 2026 South Cobalt tonnes of Sulawesi nickel in

(Reporting by Fransiska Nangoy, Bernadette Christina Munthe Editing by Ed Davies)

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