The Board of Investments (BOI) said two nickel processing firms are expected to bring in $10 billion in potential investments into the country for the manufacture of nickel product inputs for the production of electric vehicle (EV) batteries.
BOI Managing Head Ceferino S. Rodolfo
BOI Managing Head Ceferino S. Rodolfo announced the prospective huge investments in the country’s green metals industry at the “Mapping the Investment Ecosystem: Mining the Sweet Spots” forum Wednesday, April 19, jointly organized by the Department of Trade and Industry (DTI) and the Management Association of the Philippines (MAP).
Rodolfo later explained to the media that one of the two nickel manufacturing projects is owned by a huge Chinese nickel company with investments in Indonesia and the other is a non-Chinese company.
The BOI managing head, who is also DTI Undersecretary, refused to reveal the corporate identity of the two investments. But he placed the potential investments is $5 billion for each of these projects, or a total if $10B for both.
According to Rodolfo, the Chinese company has similar nickel processing investments in Indonesia.
Its project proposal in the Philippines is already in advanced stages with the BOI helping the company in looking for a manufacturing site, most probably at the Leyte Industrial Development Estate.
The Chinese company is also in talks with local partners, particularly nickel mining firms for the supply of raw ore for processing into intermediate nickel inputs for EV battery production, most probably using the HPAL technology.
“Once the MOU with the local partners is done, this will be quick,” he said.
Rodolfo expects the MOU before mid this year to be followed by the detailed studies. “I think before the end of this year, it is possible for them to register with the BOI,” he said. Based on similar projects of the company, this kind of operation can be ramp up operation in 24 months.
Thus, he expects the first $5 billion nickel processing investments to be finalized this year. In fact, he said that it will only need $5 billion in foreign direct investments (FDI) to overtake the FDI of Vietnam.
Trade and Industry Secretary Alfredo E. Pascual earlier projected to overtake the FDIs of Vietnam and Indonesia within the Marcos administration.
The other nickel processing company is not yet as advanced as the Chinese firm, he said.
The BOI is pushing for nickel processing investments to support its goal to participate in the EV global value chain. Rodolfo noted that Indonesia, which imposes a ban on raw ore exports, has grown by 20 folds the value of its nickel.
He said that a BOI study is still ongoing on whether the government will follow the Indonesian model on its nickel industry.
The BOI study weighs the possibility of imposing an export ban on raw ore or impose a tax on raw ore exports.
Rodolfo said it is making sure that its nickel policy will have sure commercial impact, meaning it will bring in investments in nickel processing in the country.
Thus, he said, President Marcos has spoken with nickel investors in Davos, Switzerland. “But whatever policy we will have, this will have to increase value add and position the Philippines for EV battery making all the way to EV production,” Rodolfo said.
That’s why it is very important that the Philippines has laid out its policies in terms of environment and labor protection. “We won’t derogate that because that is very important to us because whatever nickel we are able to process are geared towards batteries that will be used by global brands that have very strict ESG (environmental, social, governance) compliance policies.
Meantime, Rodolfo said that another Chinese firm engaged in the manufacture of power turbines for renewable energy plants is also keen in producing these equipment in the country for domestic RE companies and for exports.