Jakarta, CNBC Indonesia – The Ministry of State-Owned Enterprises (BUMN) named two battery manufacturers electric vehicle The world’s largest (EV) is currently interested in joining Indonesia’s nickel downstream plan through the construction of an EV battery factory.
The electric vehicle battery factory project is estimated to be worth US $ 20 billion (Rp 296 trillion, assuming an exchange rate of Rp 14,800 / US $). The value is greater than the estimate of the Mining BUMN Holding or MIND ID of US $ 12 billion.
BUMN Minister Erick Thohir said the two companies were Contemporary Amperex Technology Co. Ltd (CATL) from China and LG Chem Ltd from South Korea.
The two companies are the world’s largest producers of EV batteries for electric vehicles.
“This is a breath of fresh air. Indonesia’s efforts, which have abundant mining wealth to downstream the mineral and coal industry, immediately received a good response from foreign investors,” said Erick in his press release, Wednesday (14/10/2020).
“This is proof that Indonesia’s policy is right. With the presence of foreign investment to support national programs in this industry, I am sure that the sustainability aspect will continue to develop and we will become stronger in our competitiveness to support energy security for Indonesia.”
For the record, the official website notes, Contemporary Amperex Technology is a Chinese battery manufacturer and technology company founded in 2011 that focuses on making lithium-ion batteries for electric vehicles and energy storage systems, as well as battery management systems. Its shares are listed on the Shenzhen Stock Exchange.
Meanwhile, LG Chemical, is the largest Korean chemical manufacturer and is headquartered in Seoul. The company was first founded as Lucky Chemical Industrial Corporation, which produces cosmetics. Currently the company is listed on the Korea Exchange.
Erick said Indonesia has been known as a producer and exporter of nickel, the main raw material for EV batteries, the world’s largest, which controls 27 percent of the global market demand.
Thus, the policy of the Ministry of BUMN to innovate business models in this industry and increase the abundant nickel value chain in the Archipelago is aimed at taking advantage of profits while building the domestic lithium battery industry.
The potential for nickel in the country, especially those managed by BUMN, is getting better after the completion of the purchase transaction of 20% divestment shares of PT Vale Indonesia Tbk (INCO) by the Mining Industry BUMN Holding, Mining Industri Indonesia (MIND ID).
MIND ID or PT Inalum will have strategic access to secure the supply of raw materials for Indonesia’s downstream nickel industry. Both for downstreaming the nickel industry into stainless steel, as well as into electric vehicle batteries.
Previously MIND ID said that the company through PT Aneka Tambang Tbk (ANTM) would form a Holding Indonesia Battery.
President Director of MIND ID Orias Petrus Moedak said that the construction of the battery factory would be led by Inalum through ANTM, together with PT Pertamina (Persero) and PT PLN (Persero). The three companies will later become part of this Indonesian Battery Holding company.
Currently, his party is preparing to form the PT Indonesia Battery holding company.
“In the upstream we have Antam, the intermediate one is Pertamina, the downstream is PLN. Now it is being processed. It will be Indonesia Battery, that is the holding company involved in making batteries from upstream to downstream,” he explained.
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