Indonesia intends to establish a full industrial chain of nickel batteries
Indonesia has developed a plan to establish a complete battery production line and plans to establish a state-owned holding company by June.
It is reported that Indonesia has drafted an "end-to-end development" plan, the plan will be four state-owned companies to provide nickel ore, processing nickel sulfate and cobalt sulfate, and then produce cathodes and batteries, Agus Tjahajana will be specifically responsible for the new company.
State-owned Enterprise Ministry spokesperson Arya Sinulingga said: “Indonesia will hold all nickel and battery-related products from upstream to downstream in the battery holding company. We must proceed quickly.” Mining company PT Aneka Tambang will focus on nickel ore, and PT Indonesia Asahan Aluminium (Inalum for short) will cooperate with an energy holding company.
PT Pertamina will oversee the production of batteries and battery components, and Pertamina and power producer PT Perusahaan Listrik Negara will be responsible for power supply and infrastructure construction. Each state-owned company will hold a 25% stake in the Indonesian Battery Industry Holding Company to be established in June.
Nickel ore
Agus Tjahajana said that in the past six months, at least two "very serious potential partners" will become partners in the supply chain, and a "newcomer" may join. Potential projects include a 195 GWh plant with an annual production capacity of 150,000 tons of nickel ore. About 70% of its output will be used in Indonesia's emerging electric vehicle market, and the rest will be exported in the form of batteries. The value of the plant will exceed 17 billion U.S. dollars and will be jointly invested with foreign partners.
The government has called on some of the world’s top battery manufacturers, such as China’s Amperex Technology Co. Ltd. and South Korea’s LG Chem Ltd. to set up factories, while negotiations with Tesla are also underway. Tjahajana said: "We are ready to let Tesla enter anywhere. We will prepare the land. Tesla only needs to choose whether to cooperate with PLN or Pertamina."
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