Indonesia Sovereign Funds, Eramet Form Strategic Nickel Partnership

Indonesia’s sovereign wealth funds, Danantara Indonesia and the Indonesia Investment Authority (INA), have partnered with French mining company Eramet to establish a strategic investment platform focused on the nickel sector, covering upstream to downstream operations. This collaboration aims to develop a sustainable and integrated electric vehicle (EV) battery raw materials ecosystem in Indonesia, with Danantara and INA managing long-term financing and Eramet providing technical expertise for large-scale mining projects adhering to international sustainability standards. The partnership was formalized through a memorandum of understanding (MoU) witnessed by Indonesian President Prabowo Subianto and French President Emmanuel Macron, reflecting a broader commitment to enhance Indonesia’s role as a global hub in the EV battery supply chain. The parties will conduct a preliminary assessment to identify viable projects and prepare a roadmap for future collaboration, emphasizing efficiency, economic value, and strict international asset management standards. This initiative is seen as a key pillar in strengthening the competitiveness of Indonesia’s national industry and critical minerals supply chain. While other collaborations exist in Indonesia’s EV battery sector, such as partnerships involving Danantara, Huayou, and CATL, the Eramet deal specifically highlights the integration of global mining expertise with sovereign wealth fund financing to support downstream nickel investment.