Jakarta –
Two of the world’s two electric vehicle battery manufacturers, Contemporary Amperex Technology Co. Ltd (CATL) and LG Chem Ltd will invest around US $ 20 billion or equivalent to Rp 294 trillion (exchange rate Rp 14,700 / US $) in the project battery in Indonesia.
The companies signed an agreement with PT Aneka Tambang (Antam) Tbk last month to generate added value from Antam’s nickel products.
Deputy for Investment and Mining Coordination at the Coordinating Ministry for Maritime Affairs and Investment, Septian Hario Seto, said that this is a strategy that will develop the nickel processing industry business into battery components for electric vehicles.
“This is a technology race. LG Chem and CATL are two pioneers in lithium battery technology,” he was quoted as saying Bloomberg, Wednesday (14/10/2020).
A spokesman for the South Korean battery maker said LG Chem and Antam have agreed to review future cooperation options, although the plan is still very early on. He said the full agreement would help provide LG Chem with stable access to nickel.
Previously, Indonesia announced that the investment needed to build an electric vehicle battery supply chain could potentially reach US $ 30 billion. The investment plan from CATL and LG Chem is said to be part of this US $ 30 billion investment plan.
The additional investment will offer further support for President Joko Widodo’s (Jokowi) ambition to develop the country as a major regional hub in the industry.
Companies including PT Indonesia Asahan Aluminum (Inalum) and PT Perusahaan Listrik Negara (PLN) will work together under parent company Indonesia Battery. The business will produce lithium-ion cells and work with Antam and others.
At least one plant could start production before the end of next year, if environmental approval and waste management plans are completed.
(dna / dna)
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