Indonesia is making significant strides in the electric vehicle (EV) industry with the inauguration of a new anode plant in Kendal, Central Java. President Joko Widodo officially opened the facility on Wednesday, marking a major collaboration between the Chinese mainland's BTR New Material Group and Singapore's Stellar Investment.
The state-of-the-art plant represents an initial investment of $478 million and boasts a production capacity of 80,000 tonnes of anode materials annually. This development is a cornerstone in Indonesia's strategy to cultivate a robust domestic EV market, leveraging the country's rich nickel reserves essential for battery production.
President Widodo emphasized the strategic importance of this move, highlighting the 2020 ban on raw nickel exports as a pivotal step toward building a sustainable EV ecosystem. The ban has encouraged local processing and value addition, laying the groundwork for Indonesia to become a key player in the global battery supply chain.
BTR New Material Group plans to source graphite from its Indonesian Morowali plant for use in the new facility. Additionally, the company is eyeing an expansion with a further investment of $299 million in the second phase, aiming to double the plant's capacity to 160,000 tonnes per year by the end of this year. Chairman He Xueqin of BTR New Material Group stated that this expansion will position Indonesia as a leading global producer of anode materials, trailing only behind China.
Indonesia's proactive efforts to develop its domestic battery and EV industry have already attracted substantial investments from major international players. Notably, South Korea's Hyundai Motor Group and LG Energy Solution have shown keen interest, with Hyundai recently launching Indonesia's first battery cell production facility integrated with its EV manufacturing operations.
This surge in investment underscores Indonesia's growing prominence in the global EV landscape, promising sustainable growth and innovation in the years to come.
Reference(s):
cgtn.com
