PT KNI Aims to Begin HPAL Production in August 2026 with $4.5 Billion Investment
PT Kolaka Nickel Indonesia (KNI) is on track to commence production of Mixed Hydroxide Precipitate (MHP) from its High Pressure Acid Leach (HPAL) facility by August 2026. The project, located in Kolaka, Southeast Sulawesi, represents a significant investment aimed at bolstering Indonesia's position in the electric vehicle battery supply chain.
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PT KNI is set to initiate production at its HPAL facility in August 2026, targeting an annual output of 120,000 tons of nickel. The development project spans approximately 9,384 hectares and has an investment value of $4.5 billion, with five production lines planned for phased activation.
Currently, KNI is in the construction phase, having started land clearing in October 2024 and ongoing construction activities since 2025. The facility will utilize hydro-metallurgical techniques and integrate a power generation system to support operations, requiring around 100 megawatts of energy.
Upon full operation, the project is expected to employ around 5,000 workers, including 1,000 foreign workers. The MHP produced will initially be exported to China due to the lack of local processing facilities for battery materials.
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