Brazilian mining giant Vale’s Indonesian unit Vale Indonesia has signed an investment agreement with China's Baowu’s unit Shandong Xinhai Technology to develop a ferronickel processing plant at Bahodopi in Morowali in Central Sulawesi Island in Indonesia. The plant would cost around USD 2.1 billion and have the capacity to produce ferronickel with 73,000-80,000 tonnes of nickel content a year. New plant construction would finish in 2025 at the latest. Under the agreement, Vale and Shandong Xinhai would establish a new joint venture with the former controlling 49% & Baowu & Shandong Xinhai's subsidiary Taiyuan Iron & Steel would together control the reminder 51%Vale and its partners are also developing a plant to produce 120,000 tonnes per year of mixed hydroxide deposits, a material extracted from nickel ore to be used in batteries for electric vehicles in Pomalaa in Sulawesi Island.Vale Indonesia controls Indonesia's largest nickel mine Sorowako located in South Sulawesi. The mine produced 71,600 tonnes of nickel in 2020. Vale Indonesia said that with new plant, the mine could operate until 2045.