JAKARTA (TheInsiderStories) - Indonesia has potential to grab new investment in the lithium battery for electric vehicle (EV) projects up to US$17 billion, said the official in a hearing with parliament on Monday (02/01). The country also have ability to produces 125,000 units of EV and electric motors around 1.34 million units in this year.
In this year, the Southeast Asian largest economy is estimating to build Public Electric Vehicle Charging Station as much as 572 units and the Public Electric Vehicle Battery Exchange Station about 3,000 units. The head of the EV Battery Project Acceleration Team, Agus Tjahajana, explained with these potentials, the country could reduce fuel consumption by 0.44 million kilo liters per year.
Some companies has committed to build the EV battery factory in Indonesia were South Korean company’ LG Consortium Ltd., joint with state-owned companies (SOEs). The manufacturer had committed to invest US$9.8 billion to make the first lithium battery plant for electric car in the archipelago.
This investment cooperation project is the result of a follow-up meeting between President Joko Widodo and President Moon Jae In in Busan. The SOEs ministry has prepared a consortium consisting of PT Indonesia Asahan Aluminum (MIND ID), PT Aneka Tambang Tbk (IDX: ANTM), PT Pertamina, and PT Perusahaan Listrik Negara.
The project will be located in the Integrated Industrial Zones in Batang, Central Java. Other South Korean company, Hyundai Motor Group is working to set up lithium battery plant in Indonesia. Both will utilize the new plant as a hub to target the future electric car market in Southeast Asia. Its expecting the joint venture contract will signs in July of this year.
The electric car giant from America, Tesla Inc., (NASDAQ: TSLA) was also serious about investing in Indonesia. Even though the movement seems quiet, the government admits that communication is continuing. Earlier, Contemporary Amperex Technology Co. Ltd., from China will invests around $10 billion.
The company is a battery manufacturer and technology company founded in 2011 that focuses on making lithium-ion batteries for EVs and energy storage systems, as well as battery management systems. Its shares are listed on the Shenzhen Stock Exchange. So far, the industry ministry had accept various investment commitments in the lithium battery projects in Indonesia.
Then, PT QMB New Energy Minerals has commit to invest US$700 million in Morowali. And, PT Halmahera Persada Lygend also has committed to pouring out Rp14.8 trillion ($1.06 billion) of investment in Halmahera, North Maluku.
In addition, PT International Chemical Industry disbursed Rp207.5 billion to produce as many as 25 million lithium ion cell batteries which are equivalent to 256 megawatts annualy. The company will begin to enter the commercial pre-production stage at the end of 2020 and begin to enter the stage commercial production in this year.
US$1: Rp14,000
Written by Editorial Staff, Email: theinsiderstories@gmail.com
