Indonesia vows support for LG-led $9.8 bn battery project

[Indos]

AlhamduliLLAH

Indonesian Minister of Investment Bahlil Lahadalia on Thursday affirmed the government’s commitment to a $9.8 billion electric vehicle battery manufacturing project led by South Korea’s LG Energy Solution Ltd., according to Yonhap News.

During a meeting with LG Energy Solution Chief Executive Kwon Young Soo, Lahadalia, who also heads the Investment Coordinating Board (BKPM), noted the Indonesian government is ready to support the LG-led consortium so they can move forward with the project.

Indonesian ambassador to South Korea Gandi Sulistiyanto attended the meeting.

Yonhap cited the Indonesian news agency Antara about Lahadalia’s remarks. The Korea Economic Daily could not find the relevant article from the latter’s website as of Friday afternoon.

South Korean President Yoon Suk Yeol (second from bottom right) holds a summit meeting with Indonesian counterpart Joko Widodo (second from bottom left) in May 2023 in Japan on the sidelines of the G7 summit


In late 2019, LG Energy signed a memorandum of understanding with two Indonesian government-owned companies -- Antam and Indonesia Battery Corp. -- to build EV battery cell production facilities in the Karawang International Industrial City in east Jakarta for $9.8 billion.

The project involves the mining and processing of battery raw materials, as well as battery cell production and recycling.

But it has made little progress after the US Inflation Reduction Act came into effect in 2022, which requires a certain percentage of EV battery materials to be sourced in North America or its trading partners to qualify for tax credits.

LG Energy Solution CEO Kwon Young Soo (right), LX International CEO Yoon Choon-sung

The Indonesian investment minister expressed his gratitude for LG’s efforts to keep the project afloat and said the ministry will help the LG-led consortium to win approval from relevant authorities, Yonhap reported.

The consortium includes LG Chem Ltd., LX International Corp., POSCO Future M Co. and China’s Huayou, along with Antam and Indonesia Battery.

In response, LG Energy’s Kwon said the consortium members could be able to get the nod from their boards of directors to launch the project from this year.

The EV battery cell plant to be constructed in Indonesia was expected to begin commercial production in April 2024 with an annual capacity of 10 gigawatts hours.

Write to Il-Gue Kim at Black0419@hankyung.com
Yeonhee Kim edited this article

Indonesia vows support for LG-led $9.8 bn battery project - KED Global

Indonesian Minister of Investment Bahlil Lahadalia on Thursday affirmed its government’s commitment to a $9.8 billion electric vehicle battery manufactur

www.kedglobal.com

 

[Indos]

Indonesia's mining and EV battery sectors to get $9 billion boost​

How will the British consortium investment impact the country's economy and sustainable development?

Abdul-Rahman Oladimeji Bello

Created: May 31, 2023 10:13 AM EST

Ioniq 5 produced in Indonesia.

A significant boost to Indonesia's mining and electric vehicle (EV) battery sectors is on the horizon as a British consortium, including the renowned mining company Glencore, commits to investing around $9 billion.

The investment aims to capitalize on Indonesia's abundant nickel reserves and establish a strong foothold in the country's rapidly developing EV industry. With hopes of attracting multinational firms, Indonesia's resource-rich landscape has become an attractive destination for global investors.

Indonesia possesses the world's largest nickel reserves, making it a prime candidate for the development of downstream industries. The ultimate goal is to establish battery and vehicle production facilities to cater to the world's leading electric car manufacturers.

Bahlil Lahadalia, Indonesia's Investment Minister, announced the consortium's plans on Wednesday, shedding light on their ambitious venture.

Specific allocation of the funds​

While the $9 billion investment allocation remains undisclosed, Lahadalia revealed that it would primarily fund an industrial park in the Bantaeng region of Sulawesi Island. The park will rely on wind energy to power its operations, aligning with Indonesia's commitment to sustainable development. The consortium aims to complete the project by September, a target that signifies the urgency and determination with which they approach this opportunity.

Battery plug in
SolStock/iStock


Confirming the participation of Glencore, the Indonesian state miner Aneka Tambang, materials company Umicore, and energy company Envision Group, the Ministry of Investment emphasized the consortium's robust composition.

However, Umicore, Envision, and Aneka Tambang have yet to respond to requests for official confirmation. On the other hand, Glencore maintained its silence, with a spokesperson stating that the firm does not comment on rumors.

Minister Lahadalia expressed his enthusiasm for the investment, stating, "The investment is about $9 billion if it is according to plans. If we can speed it up, we'll do it." The Indonesian government, keen on preserving nickel supplies for current and potential investors, implemented a ban on the export of unprocessed nickel ore in 2020. This move demonstrates the country's commitment to attracting global EV manufacturers, including the likes of Tesla and China's BYD Group.

This significant influx of investment signifies the growing confidence in Indonesia's potential and highlights the country's determination to emerge as a key player in the global EV industry. With its abundant natural resources and a favorable investment environment, Indonesia is poised to transform into a major hub for battery and vehicle production, contributing to the global transition toward sustainable transportation.

The British consortium's commitment to investing $9 billion in Indonesia's mining and EV battery sectors marks a substantial leap forward for both countries. This partnership will undoubtedly pave the way for economic growth, technological advancements, and a greener future.

Indonesia's mining and EV battery sectors to get $9 billion boost

The investment aims to capitalize on Indonesia's abundant nickel reserves and establish a strong foothold in the country's rapidly developing EV industry.

interestingengineering.com

 

[Indos]

IBC, the Backbone of the Integrated Electric Vehicle Battery Industry in Indonesia​

SOE Minister Erick Thohir prepares to attend a press conference on the establishment of the Indonesia Battery Corporation (IBC) at the Ministry of SOEs office, Jakarta, Friday (26/3/2021). ANTARA PHOTOS/Dhemas Reviyanto/foc.

Wednesday, 27 July 2022 | 13:21 p.m.


KONTAN.CO.ID - JAKARTA. The government's desire to encourage the development of the electric vehicle battery industry has only surfaced in the past year. The most real form is the establishment of Indonesia Battery Corporation (IBC) or PT Industri Battery Indonesia in March 2021.

Four state-owned enterprises; PT Aneka Tambang Tbk (ANTM), MIND ID (Persero), PT Pertamina (Persero) and PLN (Persero) are IBC shareholders with 25% ownership each.
A heavy burden is pinned on the shoulders of the IBC; Build and develop an integrated battery industry. Starting from nickel ore mining to recycling used batteries.

Technology and large investment costs are obstacles for Indonesia. But, this country has another major capital; availability of raw materials in the form of abundant nickel ore. Referring to data from the United States Geological Survey (USGS), Indonesia's nickel reserves reach 52% of the world's total nickel reserves.

This is where Antam's position becomes strategic because the red plate (state owned) company is the owner of the second largest nickel reserves in Indonesia.

Dolok Robert Silaban, Director of Business Development of Antam told KONTAN (26/7) that in 2021 ANTAM's nickel ore reserves were recorded at 381.91 million wet metric tons (wmt), growing 2% compared to reserves in 2020 of 375.52 million wmt. The total reserves of 381.91 million wmt consist of 332.69 million wmt of nickel saprolite ore and 49.22 million wmt of nickel limonite ore.

Antam's nickel ore production target in 2022 is 12.10 million wmt, growing 10% from the realization in 2021 of 11.01 million wmt.

Also Read: Thanks to EV Batteries, Low-Grade Nickel Will Rise from Paria to Excellent

Thus, IBC also has a precise strategy by cooperating with CATL and LG Energy Solution to build an integrated EV battery industry in the country. Both are the world's largest manufacturers of electric vehicle batteries.

CATL, for example, referring to a Wired publication on June 28, 2022, said CATL supplies 30% of the world's EV battery needs. Tesla, Kia and BMW are examples of several electric car manufacturers that use batteries made by the company founded by Zeng Yuqun aka Robin Zeng.

The combined production of CATL and LG Energy Solution, IBC President Director Toto Nugroho said, is already approaching 300 gigawatt hours (GWh), or almost half of the world's EV battery production.

Attract investment commitments of tens of billions of US dollars​

Well, in April 2022, commitments from LG and CATL were successfully obtained. Toto said, LG is committed to investing US $ 9.8 billion and CATL of US $ 5.97 billion.

"This is an end-to-end cooperation, starting from mining, refining, to becoming battery products, including battery recycling," Toto told KONTAN (25/7).

The scheme, this year was made a joint venture (JV) in mining, in collaboration with Antam (ANTM). On this upstream side, the Indonesian side will be the majority shareholder. The location of the mine, said Toto, is in East Halmahera, North Maluku.

Thus, Antam also plans to separate some of the assets and liabilities related to its nickel mining business in East Halmahera to PT Nusa Karya Arindo and PT Sumberdaya Arindo. These two entities are wholly owned subsidiaries of Antam.

To smooth the spin-off plan, Antam will hold an Extraordinary General Meeting of Shareholders (EGMS) on August 23, 2022.

Also Read: Exploring the Waste Management Problems of Lithium Battery Cathode Precursor Plants

Meanwhile, the JV for processing from nickel ore into battery raw materials will be formed by the end of 2022. The target is that the processing facility can operate in 2024-2025.

On the downstream side, from processing to finished products in the form of EV batteries, IBC will be a minority shareholder with an ownership portion above 10%.

Details of the portion of shares and the amount of investment that are part of IBC cannot be disclosed, because it is still bound by the confidentiality clause or non-disclosure agreement.

A raw material processing plant in collaboration with CATL will be built in Halmahera. In the initial phase, CATL will build a 15 GWh EV battery factory.

"CATL for the first phase is 15 GWh, then up to 50 GWh. Adjusted to the demand in Indonesia," said Toto.

Meanwhile, in 2025-2026, LG's electric vehicle battery production capacity in Indonesia is targeted to reach 30 GWh.

Also Read: Nickel, Indonesia Morowali Industrial Park (IMIP), EV Battery and New Face of Bahodopi

The cathode and anode production facility in collaboration with LG was built in the Batang Integrated Industrial Estate, Central Java. The production of the factory in Batang will later supply the needs of PT HKML Battery Indonesia's EV battery factory in Karawang New Industry City, West Java.

According to Toto, IBC also has share ownership in PT HKML Battery Indonesia.

"There are but minorities, we are very small there. Our position is more for portfolio ownership. But if it has been integrated with our end to end, we can take a larger share portion," he said.

These efforts and strategies are taken to achieve the target of electric vehicle penetration in Indonesia of 30% by 2030. This is quite an ambitious target but not impossible to achieve.

IBC, Ujung Tombak Industri Baterai Kendaraan Listrik Terintegrasi di Indonesia

Cadangan nikel yang melimpah menjadi modal utama Indonesia memasuki industri baterai kendaraan listrik.

jelajahekonomi.kontan.co.id

 

[REhorror]

Indonesia is rising and fast!

 

[Indos]

Jokowi’s EV ambition takes a step forward with cathode factory​

• Friday, 04 Aug 2023
  11:44 AM MYT

JAKARTA (Bloomberg):- President Joko Widodo’s ambition of building out Indonesia’s electric-vehicle supply chain is seeing another step forward with plans for a cathode plant.

Indonesian state miner Aneka Tambang, Indonesia Battery Corporation and a consortium led by South Korea’s LG Energy Solution Ltd. are building the facility as part of a US$9.8 billion "grand package” to build battery production onshore, according to a statement by Indonesia’s investment ministry on Thursday (Aug 3).

The country is the world’s largest source of nickel, a key material for high-performance batteries, and it’s seeking to use that advantage to build out an EV industry onshore.

Indonesia has seen a rush of investments into building nickel smelters, followed by plans for a cathode precursor facility. A cathode plant would take the country one notch higher in the value chain.

Construction for the cathode plant will begin as early as this year after the companies resolved the trickiest part of the negotiation involving shareholding, LG Energy Chief Executive Officer Young Soo Kwon said in the ministry statement.

The group of companies are also building a nickel smelter, cathode precursor factory and a $1.1 billion battery cell factory set to start production in April. Investment Minister Bahlil Lahadalia said the plans were set back after the US issued the Inflation Reduction Act, which disrupted the global supply chains for EV battery materials.

Jokowi’s EV ambition takes a step forward with cathode factory

JAKARTA (Bloomberg):- President Joko Widodo’s ambition of building out Indonesia’s electric-vehicle supply chain is seeing another step forward with plans for a cathode plant.

www.thestar.com.my