10 May 2022 (closed)
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Indonesian Investment Minister and Head of the Investment Coordinating Board (or BKPM) Bahlil Lahadalia confirmed that the groundbreaking ceremony for a new electric vehicle battery plant, which is developed by state-owned Indonesia Battery Corporation (IBC) and South Korea’s LG, will be held in late-July or August 2021 in Bekasi (West Java).
The project starts with the construction of a cell battery plant. Lahadalia said the focus of the project is first on the development of downstream activities. Considering Indonesia is rich in nickel and cobalt the threat could be that these (semi-processed) raw materials are going to be exported to overseas electric battery manufacturers if Indonesia doesn’t develop its own integrated upstream-downstream electric vehicle battery industry ecosystem.
In the first stage of the IBC-LG electric vehicle battery project, the USD $1.2 billion plant will have a ten gigawatt hours (GWh) production capacity per year. Commercial production is targeted to start in 2023. This first stage is in fact part of a bigger USD $9.8 billion deal that was signed in December 2020 between IBC and the LG consortium that consists of LG Energy Solution, LG International, LG Chem, POSCO, and Huayou Holding.
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