Indonesia Electric Car Battery Factory Reportedly to Be Built Next Month

Illustration. (Photo: Reuters)

Jakarta, Batamnews - The electric car battery factory owned by PT Industri Battery Indonesia or Indonesia Battery Corporation (IBC) and the Korean LG Consortium will begin construction in July 2021.

"This LG has started its groundbreaking in July, we will build it in early August, this is not a fairy tale, we have already done this," said Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia in a National Coordination Meeting with HIPMI virtually, Saturday (19/6/2021).

The electric battery production plant, which is said to be the first in Asia and even in the world, has an investment value of US$ 9.8 billion (around Rp. 142 trillion). Bahlil called this investment the first and largest post-reform.

"We have built a partnership with LG amounting to US$ 9.8 billion or Rp. 142 trillion. This is the biggest investment after the new reform this time," he said.

Optimistic to be the largest in the world, because Bahlil revealed that 50% of the materials for the manufacture of electric car batteries are located in Indonesia, especially nickel. He emphasized that the government had banned the export of nickel so that Indonesia could become the largest battery producer in the world.

"Why does Indonesia prohibit nickel exports? So that Indonesia becomes the world's largest producer of batteries. So we can't just continue to export raw materials," he said.

"50% of the components of electric car batteries are batteries, and the largest raw materials are nickel and 25% nickel in the world's total reserves are in Indonesia, then there is manganese, mostly in Southeast Sulawesi, then Cobalt, which is a derivative product of nickel. We only import lithium from Australia," he added.

Bahlil hopes that licensed nickel mining entrepreneurs, especially in the regions, will take part in this big project.

"Hopefully, friends who already have a nickel Mining Business Permit (IUP) in the regions can collaborate with investors who enter Indonesia and domestic entrepreneurs," he explained.