A $15 billion framework agreement between the Indonesian government and battery makers LG Chem and Contemporary Amperex Technology (CATL) aims to create a battery industry in the country.
PT Industri Baterai Indonesia (Indonesia Battery Corporation) signed the framework agreement to develop an integrated EV Battery project with nickel miner Aneka Tambang (known as ANTAM) and PT Ningbo Contemporary Brunp Lygend (a subsidiary of Chinese firm CATL).
ANTAM and IBC have also signed an agreement with LG Energy Solution— a subsidiary of Korean firm LG Chem.
The IBC is a partnership of state-owned firms: power utility PLN, oil and gas giant Pertamina, ANTAM, and MIND ID, an acronym for Mining Industry Indonesia, that oversees mining companies: Antam, Bukit Asam, Freeport Indonesia, Indonesia Asahan Aluminium (Inalum) and Timah.
The total investment estimation for both agreements is estimated to be around $15 billion (equivalent to Rp215 trillion).
Indonesia’s coordinating minister for maritime affairs and investment Luhut Binsar Pandjaitan said: “The signing is an important milestone for Indonesia to become one of the leaders in the global EV battery industry.”
The country’s minister of investment/head of the investment coordinating board of Indonesia, Bahlil Lahadalia, said: “We look forward to the further implementation by the parties and hoped the agreement will be implemented promptly.”
Vice minister of state owned enterprises, Pahala Nugraha Mansury, said the development of the EV Battery ecosystem would enhance Indonesia’s participation in the global supply chain of the battery industry and expressed hope for the acceleration of the EV battery development investment activities by the IBC and its shareholders.
ANTAM’s president director, Nico Kanter, said: “The framework agreement signing marks the first stage of the EV Battery ecosystem development in Indonesia.
“ANTAM supports the government’s initiatives on the development of integrated EV Battery industry in Indonesia to elevate the national’s mineral added value into the more strategic stage.”
