In October 2020, several state-owned Indonesian companies formed a joint venture for batteries for electric vehicles (EV). The new joint venture, called Indonesia Battery Holding, will cover everything from producing chemicals and minerals to the manufacturing of battery cells and recycling of old batteries. The founding companies are Mining Industry Indonesia (MIND ID), Aneka Tambang (ANTAM), Perusahaan Listrik Negara (PLN) and Pertamina.
Indonesia is positioning itself as an EV manufacturing country, backed by its rich nickel and cobalt resources. Eventually, it aims to become a global hub for manufacturing and exporting EV.
Recent progress in EV development in Indonesia include:
- In December 2020, Chinese battery cell manufacturer CATL announced plans to invest USD 5 billion in a lithium battery plant in Indonesia. The plant will commence production in 2024. CATL has inked an agreement with ANTAM to ensure 60% of nickel will be processed into batteries in the country.
- In the same month, South Korea LG Group signed an MoU with Indonesia on a USD 9.8 billion EV investment deal. The MoU outlines a plan to build an integrated electric battery factory, from upstream to downstream.
- President Joko Widodo sent a personal invitation to Tesla’s Elon Musk to invest in Indonesia. In December 2020, they discussed Indonesia’s potential as an investment destination.
(Sources: Electrive; South China Morning Post; Yahoo Finance)