Gem Co. 1H revenue 17.56B yuan

Gem Co. 1H revenue 17.56B yuan

Indonesian sovereign wealth fund Danantara has signed a $1.42 billion heads of agreement with Chinese company GEM Co. Ltd. to develop a plant producing battery-grade nickel. The high-pressure acid leach (HPAL) facility is expected to produce 66,000 tons of nickel in mixed hydroxide precipitate annually [1].

The project, which involves collaboration with PT Vale Indonesia and other partners, is a significant move by Danantara into the Indonesian nickel sector, which accounts for well over half of global supply. This agreement follows Danantara’s memorandum of understanding with French nickel miner Eramet SA exploring possible collaboration [1].

GEM, which already operates two HPAL plants in Indonesia, will also fund a $30 million metallurgical research lab with Bandung Institute of Technology. The facility will produce a form of nickel used in electric vehicle batteries, a growing market due to increasing demand for renewable energy [1].

The agreement comes at a time when nickel prices have been subdued due to Indonesia's booming supply. HPAL plants, typically very profitable, are seeing their margins squeezed by low prices and rising costs for key raw materials. Despite these challenges, the project is expected to contribute to GEM’s 1H revenue, which reached 17.56B yuan [2].

Danantara, with $1 trillion of assets under management, has so far focused on raising money through dividends from state-owned enterprises, a $10 billion credit line from foreign banks, and patriot bonds. Its only major deal has been a $405 million loan to state airline PT Garuda Indonesia [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-08-27/danantara-and-gem-to-develop-1-4-billion-indonesia-nickel-plant
[2] https://www.bloomberg.com/news/articles/2025-07-02/gem-co-1h-revenue-17-56b-yuan