China Molybdenum Co. (CMOC) through its financial arm W-Source planned to take an indirect 30% stake in an Indonesian project own by PT Huayue Nickel Cobalt. The seller is investment firm, Newstride Limited, and PT Indonesia Morowali Industrial Park (IMIP).

The company will indirectly hold 30 percent equity interests in Huayue through W-Source, and Huayue will become a joint-stock company of the Company. It said, CMOC has further agreed to provide a loan of US$10.50 million to W-Source for the purposes of repaying its debt owe to a shareholder of Huayue and paying the consideration under the acquisition deal. The company stated, the stepped taken to increase its exposure to the growing market for battery metals.

The planned in Sulawesi is one of a series of Chinese-invested nickel smelting projects in Indonesia. The Huayue plans to produce 60,000 tons a year of mixed nickel hydroxide cobalt. Nickel and cobalt are both key ingredients in batteries for electric vehicles.

Prior the acquisition, Huaqing Nickel & Cobalt owned 58% of Huayue, Qingchuang International Holdings 20%, Woyuan Holdings 11%, IMIP 10%, and Long Sincere 1%.