GEM Indonesia Legend: Building a Market Cap of 35 Billion by Recycling 'Waste'!

On August 28, 2024, a significant inauguration ceremony was held at Bandung Institute of Technology in Indonesia. GEM Group Chairman Xu Kaihua, along with representatives from various sectors in Indonesia, witnessed the birth of the China-Indonesia Joint Research Laboratory for New Energy Materials and Metallurgical Engineering Technology. On August 28, 2024, at Bandung Institute of Technology in Indonesia, the unveiling ceremony for the China-Indonesia Joint Research Laboratory for New Energy Materials and Metallurgical Engineering Technology was held. It has been six years since GEM went overseas in 2018. This company, with its core philosophy of "turning waste into treasure and recycling," is now turning the resources of this land into hope for new energy through concrete actions. I. The 'Secret Weapon' of New Energy Vehicles – Nickel The story begins with the precious metal, nickel. Nickel, a key element in ternary power batteries, is the "secret weapon" that enables new energy vehicles to achieve a range of over 800 kilometers. However, China's nickel reserves account for only 3% of the world's total. Facing the growing demand for new energy, finding new sources of nickel has become a huge challenge for China's new energy industry. GEM Chairman Xu Kaihua, a leader deeply rooted in the circular economy for years, turned his attention to the distant Indonesia with sharp market insight and forward-looking strategic vision. At that time, Indonesia was rich in nickel resources but, due to a long-term lack of advanced refining technology and professional talent, could only watch its precious resources go to waste. "At that time, high-grade laterite nickel ore with nickel content above 1.5% in Indonesia was becoming scarce, but low-grade nickel ore with nickel content below 1.2% had not been properly utilized and was even discarded," Xu Kaihua recalled in a later interview. However, these low-grade nickel ores, considered "chicken ribs" locally, were seen by GEM as treasures because they not only contained nickel but also cobalt and manganese, in proportions that exactly matched the formula for high-nickel ternary materials. II. GEM Starts Its 'Gold Rush' in Indonesia With raw materials secured, the challenge remained of extracting nickel, cobalt, and manganese from low-grade nickel ore. Extracting these three valuable elements from low-grade nickel ore was no easy task—either the technology was immature or the investment cost was too high. Other countries had attempted it but ultimately gave up. It can be said that the technical challenge facing GEM was world-class. At that time, traditional smelting processes were energy-intensive and high-emission, not only costly but also causing severe environmental pollution. Facing this dilemma, GEM did not retreat but rose to the challenge, determined to solve the problem through technological innovation. On September 26, 2022, with the official opening of the first phase production line of the Indonesia QMB Laterite Nickel Ore New Energy Raw Material Project, GEM took a crucial step in converting Indonesia's low-grade nickel ore into new energy raw materials. Xu Kaihua led the team deep into Indonesia, working closely with local governments, universities, and enterprises to jointly establish the China-Indonesia Joint Research Laboratory for New Energy Materials and Metallurgical Engineering Technology. This laboratory is not only equipped with world-class research equipment and testing instruments but also brings together top talent from China and Indonesia, dedicated to the efficient utilization of nickel ore resources and the research and development of new energy materials. Ultimately, GEM successfully achieved efficient extraction and comprehensive utilization of low-grade nickel ore through its own innovative technology. "Through technological innovation, we have significantly reduced energy consumption and carbon dioxide emissions, with the highest reduction reaching 90%," Xu Kaihua said proudly. The birth of this technology not only increased Indonesia's nickel ore utilization rate from 50% to 100% but also allowed Indonesia to leap directly from the traditional smelting era into the new energy era, saving at least 20 years of catch-up time. At the same time, with this technology, Indonesia has become the world's second-largest cobalt producer. III. 'Hundred-Thousand-Ten Thousand' Training Program for Local Talent Development In GEM's view, corporate development should not only pursue economic benefits but also focus on social responsibility and sustainable development. They understand that only by forming a win-win development model with the Indonesian government, enterprises, and people can they take root and thrive in this land. Therefore, GEM's investment in Indonesia is not limited to the development of nickel ore resources but also covers talent training, technology transfer, community development, and many other areas. "We proposed a 'Hundred-Thousand-Ten Thousand Training Program' to train 100 engineering PhDs, 1,000 engineering masters, and 10,000 skilled craftsmen within six years," Xu Kaihua said. The implementation of this program has not only injected new vitality into Indonesia's metallurgical industry but also provided a solid talent guarantee for GEM's industrial development in Indonesia. Furthermore, GEM actively fulfills its social responsibilities, developing the company in accordance with ESG (Environmental, Social, and Governance) standards. They are committed to green production, energy conservation, emission reduction, and community co-building. "We must respect universally accepted awareness and rules, make the people of the host country like Chinese people, and ensure that local enterprises recognize Chinese companies as green and civilized, and that Chinese entrepreneurs are trustworthy." In GEM's Indonesian factory, you can also see Chinese and Indonesian workers working side by side, writing a story of respect for human rights and employment promotion. GEM deeply respects the religious beliefs and living habits of Indonesian workers, improving their quality through positive guidance, encouraging mentorship, and implementing a youth backbone training program. Today, the proportion of local Indonesian workers in GEM's Indonesian factory has reached 80%. "We must not only achieve industrial and capital going global but also form a dual-wheel drive of technology and education going global," Xu Kaihua said. This philosophy of GEM has not only allowed the Indonesian people to enjoy the dividends of technological development but also provided them with more job opportunities and better living conditions. IV. GEM's Indonesian Legend Continues Standing at a new historical starting point, GEM will continue to uphold the development philosophy of "green is the foundation, innovation is the gene," working hand in hand with the Indonesian government, enterprises, and people to jointly promote green development. They will continue to cultivate deeply in this land, turning more "urban mines" into hope for new energy. "We believe that as long as we adhere to innovation, prioritize quality, and build high-end production capacity, there is no such thing as overcapacity," Xu Kaihua said. This belief of GEM has not only enabled them to take a leading position in the global new energy industry but also earned them respect and trust from the Indonesian government and people. The legend of GEM in Indonesia continues. They have interpreted the true meaning of respect for human rights, employment promotion, and green development through action, setting a new benchmark for the development of the global new energy industry.