Indonesia sets up state holding for electric vehicle battery production

Electric vehicle batteries are expected to become a huge industry in the years to come

Indonesia is aiming at becoming a global hub for electric vehicle battery production based on its huge nickel reserves and is now setting up a new state-owned company to push the plan forward over the next five years.

Negotiations are underway between a group of energy and mining companies to launch Indonesia Battery Corporation, or IBC.

Four large state-owned enterprises earlier in March signed a respective shareholders’ agreement, namely state-owned oil giant Pertamina, electricity monopoly PLN, mining holding company Mind Id and nickel and gold miner PT Aneka Tambang, or Antam, which would each own 25 per cent of IBC.

Plans are that IBC enters partnerships with other companies, most notably China’s Contemporary Amperex Technology, or CATL,  and South Korea’s LG Chem, the world’s top two electric vehicle battery producers, to establish several joint ventures to create an end-to-end electric vehicle battery supply chain in Indonesia. Both companies have already said they would earmark investments worth $5.2 billion and $9.8 billion, respectively.

The new company would integrate upstream and downstream sectors of the industry from the mining of raw materials to manufacturing of batteries and the vehicles themselves. Mind Id and Antam would both be in charge of mining raw minerals, as well as processing them, while Pertamina and PLN would play a role in the manufacturing of battery cells and battery packs, as well as the rollout of charging stations for electric vehicles across the country.

Investment of $17 billion in the electric vehicle battery industry

At an investment of $17 billion, Indonesia would position itself as a crucial player in the electric vehicle market to meet the strongly growing global demand for battery-powered vehicles as more and more countries are intending to ban the sale of gasoline car engines in the near future.

“IBC will manage the electric-vehicle battery industry’s ecosystem and develop partnerships with third parties, which are the major players in the technology industry and the global market,” Indonesia’s Ministry of State Owned Enterprises said in a statement.

Full value chain covered

“This partnership will establish joint ventures across the electric-vehicle battery industry’s value chain, from nickel processing, precursor materials, cathodes, battery cells and packs, energy storage systems to recycling,” it added.

The ministry said that the company had already been approached by several global companies including players from China, Japan, South Korea, the US and Europe.

US electric vehicle maker Tesla has also expressed an interest in taking part, as well as Germany’s chemical giant BASF. Japan’s Toyota Motor has also pledged to invest $2 billion in Indonesia over four years, including into the production of electrified cars.

All ready by 2026

Indonesian government officials said that the expectation is that the upstream sector will be finished by 2024, while the manufacturing of battery cells would be completed by 2025 and a full electric vehicle battery industry would be ready by 2026.

Indonesia is home to a fifth of the world’s nickel reserves, the biggest deposit in one country, according to the US Geological Survey. Mind Id and Aneka Tambang control 30 per cent of Indonesia’s total nickel reserves.



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Electric vehicle batteries are expected to become a huge industry in the years to come Indonesia is aiming at becoming a global hub for electric vehicle battery production based on its huge nickel reserves and is now setting up a new state-owned company to push the plan forward over the next five years. Negotiations are underway between a group of energy and mining companies to launch Indonesia Battery Corporation, or IBC. Four large state-owned enterprises earlier in March signed a respective shareholders’ agreement, namely state-owned oil giant Pertamina, electricity monopoly PLN, mining holding company Mind Id and nickel and gold...

Electric vehicle batteries are expected to become a huge industry in the years to come

Indonesia is aiming at becoming a global hub for electric vehicle battery production based on its huge nickel reserves and is now setting up a new state-owned company to push the plan forward over the next five years.

Negotiations are underway between a group of energy and mining companies to launch Indonesia Battery Corporation, or IBC.

Four large state-owned enterprises earlier in March signed a respective shareholders’ agreement, namely state-owned oil giant Pertamina, electricity monopoly PLN, mining holding company Mind Id and nickel and gold miner PT Aneka Tambang, or Antam, which would each own 25 per cent of IBC.

Plans are that IBC enters partnerships with other companies, most notably China’s Contemporary Amperex Technology, or CATL,  and South Korea’s LG Chem, the world’s top two electric vehicle battery producers, to establish several joint ventures to create an end-to-end electric vehicle battery supply chain in Indonesia. Both companies have already said they would earmark investments worth $5.2 billion and $9.8 billion, respectively.

The new company would integrate upstream and downstream sectors of the industry from the mining of raw materials to manufacturing of batteries and the vehicles themselves. Mind Id and Antam would both be in charge of mining raw minerals, as well as processing them, while Pertamina and PLN would play a role in the manufacturing of battery cells and battery packs, as well as the rollout of charging stations for electric vehicles across the country.

Investment of $17 billion in the electric vehicle battery industry

At an investment of $17 billion, Indonesia would position itself as a crucial player in the electric vehicle market to meet the strongly growing global demand for battery-powered vehicles as more and more countries are intending to ban the sale of gasoline car engines in the near future.

“IBC will manage the electric-vehicle battery industry’s ecosystem and develop partnerships with third parties, which are the major players in the technology industry and the global market,” Indonesia’s Ministry of State Owned Enterprises said in a statement.

Full value chain covered

“This partnership will establish joint ventures across the electric-vehicle battery industry’s value chain, from nickel processing, precursor materials, cathodes, battery cells and packs, energy storage systems to recycling,” it added.

The ministry said that the company had already been approached by several global companies including players from China, Japan, South Korea, the US and Europe.

US electric vehicle maker Tesla has also expressed an interest in taking part, as well as Germany’s chemical giant BASF. Japan’s Toyota Motor has also pledged to invest $2 billion in Indonesia over four years, including into the production of electrified cars.

All ready by 2026

Indonesian government officials said that the expectation is that the upstream sector will be finished by 2024, while the manufacturing of battery cells would be completed by 2025 and a full electric vehicle battery industry would be ready by 2026.

Indonesia is home to a fifth of the world’s nickel reserves, the biggest deposit in one country, according to the US Geological Survey. Mind Id and Aneka Tambang control 30 per cent of Indonesia’s total nickel reserves.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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