(Yicai Global) Sept. 14 -- Huayou Cobalt, a Chinese supplier of raw minerals for electric vehicle batteries, said it will join Brazil’s Vale once more to build a second high-pressure acid leach plant in Indonesia to produce a nickel material used in ternary power batteries.

The new plant will process limonite ore from Vale Indonesia's Sorowako mine to produce 60,000 metric tons of nickel in mixed hydroxide precipitate a year, Huayou said late yesterday. The Zhejiang province-based firm will set up a project company to develop the plant, which will use its high-pressure acid leaching process.

Huayou did not reveal the project costs but said Vale had the option to own up to 30 percent of the project company. Investors may also have the right to sell the MHP produced at the plant depending on the size of their stake in the project firm.

The pair teamed up for the first time in April when they agreed to build an HPAL plant to process limonite from Vale’s Pomalaa mine in Indonesia into 120,000 metric tons of nickel in MHP annually. Ford Motor invested in the joint venture in July to secure output from the plant.

Huayou said the latest project will help to meet demand and take full advantage of Vale's local resources. The parties may also consider expanding the production capacity of the plant if the limonite supply increases, Huayou added.

Shares of Huayou [SHA: 603799] fell 0.9 percent to close at CNY76.26 (USD9.72) today amid a wider stock market selloff.

Editor: Futura Costaglione