White & Case Advised Zhejiang Huayou Cobalt on Three-party Investment in Indonesia

White & Case Advised Zhejiang Huayou Cobalt on Three-party Investment in Indonesia

White & Case LLP, a multinational law firm, has provided legal counsel to Zhejiang Huayou Cobalt Co., Ltd, a Chinese company, on its partnership agreement with global automotive company Ford Motor Company and nickel producer PT Vale Indonesia Tbk.

The partnership involves a joint investment in the Pomalaa Block High-Pressure Acid Leaching (HPAL) Project.

According to John Tivey, the White & Case partner who led the firm's deal team, the project is significant in promoting sustainable nickel production in Indonesia and accelerating the energy transition by lowering the cost of nickel for electric vehicles.

"The mining & metals sector continues to play a vital part in the global energy transition and requires advisors who bring sector knowledge as well as cross-border and cross-practice capabilities to these complex projects," John Tivey said.

Through the collaboration between Zhejiang Huayou Cobalt Co., Ltd, Ford Motor Company, and PT Vale Indonesia Tbk, the Pomalaa Block High-Pressure Acid Leaching (HPAL) Project will process ore from PT Vale Indonesia's Pomalaa nickel laterite mine into mixed hydroxide precipitate (MHP), a crucial element used in electric vehicle (EV) batteries with nickel-rich cathodes.

The collaboration is expected to improve the accessibility of battery-grade nickel for the automotive industry, bolster Indonesia's efforts to diversify and expand its EV value chain, and support Ford's target to produce 2 million EVs by the end of 2026. Full construction of the project is anticipated to commence in early 2024.

The investment of Indonesian rupiah 67.5 trillion in the development of the Pomalaa mine and associated processing facilities is part of Indonesia's National Strategic Project. This project is expected to create 12,000 construction jobs.

According to White & Case partner Paul Tang, a member of the firm's deal team, this agreement expands on Indonesia's achievement in drawing investment to nickel refining and enables it to progress up the value chain of electric vehicles.

“It also further develops Huayou's industry-leading ability to deploy the complex high-pressure acid leaching technology, demonstrating the growing integration of mining & metals companies and supply chains with automakers and industrial end-users. The project also marks the first integrated joint venture between a leading Chinese mining company and a western automaker," Paul Tang said.

The transaction was advised by the White & Case team, led by Melbourne-based partner John Tivey. The team included partners Paul Tang, Eugene Man (both from Hong Kong), Joanne Emerson Taqi (Sydney), Matthew Osborne, Charles McConnell (both from Singapore), Bingna Guo (Beijing and Shanghai), Tim Power, Aldrin De Zilva (both from Melbourne), and James Killick (Brussels), local partner James Hsiao (Hong Kong), counsel Michael Rogers (Houston), and Rika Rusman (Jakarta).

The team also included associates Xuefeng Wu (New York), Tiffany Leach, Charles Tuckwell, Beatrice Ho, Thuy Finch (all from Melbourne), Ostiane Goh-Livorness, Katelyn Chia, Lisa Yeo (all from Singapore), Yuiyee Wong (Hong Kong), Iakovos Sarmas (Brussels), and Fatah Adzkia (Jakarta).