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Sulphur 425 Jul-Aug 2026

13 July 2026

Nickel Industries starts up ENC acid plant

INDONESIA

Nickel Industries starts up ENC acid plant

Nickel Industries announced started up the sulphuric acid plant at its new Excelsior Nickel Cobalt (ENC) HPAL project in the final week of June. The ENC Project is a massive, multi-billion dollar high-pressure acid leach (HPAL) facility located in the Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi, Indonesia. It is operated by Australia’s Nickel Industries to supply battery-grade materials for the electric vehicle (EV) market. At capacity, it is expected to yield roughly 72,000 t/a of contained nickel equivalent as mixed hydroxide precipitate (MHP), nickel sulphate, and nickel cathode.

The immediate impact on the spot sulphur market in Indonesia is expected to be muted, as it is understood that the project has built a substantial inventory ahead of the start-up. This stockpile is believed to be sufficient to cover its initial consumption throughout the third quarter of 2026, likely pushing any further spot purchases into Q4. The ENC plant has a planned sulphuric acid capacity of 1 million t/a in 2026, ramping up to 3 million t/a by 2027, making it a key new consumer of sulphur feedstock.

Nickel Industries has also agreed to invest $169 million for a 17.5% interest in the PT Teluk Metal Industry (TMI) high-pressure acid leaching (HPAL) project in Indonesia. TMI is being developed as an expansion to the company’s Excelsior nickel/cobalt project within the Indonesia Morowali Industrial Park and will produce mixed hydroxide precipitate (MHP) – a key feedstock for EV batteries. Once operational, TMI is expected to have a yearly nameplate production capacity of about 38,000 tonnes of nickel in MHP, delivering attributable production to Nickel Industries of around 6,775 t/a of nickel.

Nickel Industries MD Justin Werner says the investment represented one of the final opportunities to secure large-scale exposure to Indonesia’s rapidly expanding HPAL sector following the Indonesian government’s recent moratorium on new HPAL developments. “Securing a 17.5% interest in TMI is a transformative step for Nickel Industries and one of the last opportunities of this scale in the HPAL sector following the Indonesian government’s moratorium on new HPAL projects,’’ he said. “Alongside a consortium of leading Korean and Japanese companies, LS MnM, Hanwa and an undisclosed strategic investor, we are investing in a world-class asset with a clear path to production by September 2027.”

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