SHENZHEN-BASED electric vehicle battery firm GEM Co. said yesterday it aims to double its stake in an Indonesian nickel project, becoming the majority investor to strengthen “strategic control” of the resources amid a nickel shortage.

Under a framework memorandum of understanding (MoU), GEM said in a statement that the firm’s Jingmen unit has agreed with partners in the project at Indonesia’s Morowali Industrial Park to increase its holding to 72 percent from 36 percent.

Financial terms of the MoU, which has yet to be finalized, weren’t disclosed. It wasn’t clear when the MoU might be implemented.

The plant, designed to produce chemicals used in batteries for electric vehicles with an annual capacity at 50,000 tons, was expected to start production by end-2020, but was delayed due to the coronavirus pandemic.

An official at GEM Co.’s investor relations office said part of the capacity will start production in 2022.

GEM Co. had planned the project together with stainless and nickel maker Tsingshan Group, a unit of Shenzhen-listed Contemporary Amperex Technology Ltd., Japanese trading house Hanwa Co. and PT. Indonesia Morowali Industrial Park in 2018. (SD-Agencies)