STX Establishes JV in Indonesia, the 'Nickel-Rich Country'

Local Partner Collaboration

STX Building located in Jung-gu, Seoul. Photo by STX

Global trading company STX announced on the 3rd that it has signed a joint venture agreement with an Indonesian partner, a country gaining worldwide attention as a 'nickel-rich nation.'

With this, STX will be able to additionally establish a supply chain for stable trading of nickel, a key raw material for secondary batteries. Indonesia is the world's largest nickel producer, holding 24% of the global reserves, and nickel production is expected to increase more than threefold by 2025 compared to current levels.

Earlier, at the board meeting held on April 12, STX resolved to establish a JV (joint venture company) and a corporation to fully launch its business in Indonesia through obtaining local licenses. By completing the JV establishment with a prominent partner this time, STX will be able to enhance its capabilities across the entire value chain, including nickel mining, transportation, and sales.

The Indonesian co-investor partnering with STX is a local specialized company holding licenses for the transportation and sales of mineral resources such as nickel. It records an annual nickel trading volume exceeding 300,000 tons and is also the largest shareholder of a company holding mining rights.

Along with establishing the JV, STX is promoting investment in a mine estimated to have a total nickel ore reserve of 60 million tons, expanding its business scope. Additionally, it plans to prepare for the establishment of a plant for smelting and refining minerals, which is a key part of the overall supply chain.

An STX official stated, "As demand for secondary batteries essential for electric vehicles and smartphones is rapidly increasing, how solidly the supply chain for key raw materials such as nickel and lithium is built will be an indicator determining global competitiveness. STX will continue to enhance its value as a specialized company in secondary battery materials."

Meanwhile, since STX completed the establishment of its Indonesian corporation last week, it expects greater synergy with the existing Ambatovy nickel project. Since investing in the Ambatovy mine in Madagascar, one of the world's top three nickel mines, in 2006, STX has accumulated nearly 20 years of business experience and know-how.

For trading other raw materials and industrial goods, STX has subsidiaries and offices in over 20 locations worldwide, including Japan, China, Russia, UAE (United Arab Emirates), Vietnam, Malaysia, and Peru.

This content was produced with the assistance of AI translation services.