Indonesia drives EV battery production plans forward in deal with LG Energy Solution
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MIND ID has bought a stake in PT Vale Indonesia for battery raw materials supply.
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Indonesia is to launch production of batteries for electric vehicles in the first half of 2021, under a $9.8bn (£7.2bn) deal with South Korea’s LG Energy Solution.
The project will utilise raw materials mined in Indonesia’s North Maluku region and a manufacturing plant for precursors, cathodes and certain battery cell components will be developed in the Batang industrial area of Central Java, the country’s Antara news agency announced.
A memorandum of understanding (MoU) for the project was signed by the head of Indonesia's Investment Coordinating Board (BKPM), Bahlil Lahadalia, in Seoul, in the presence of South Korea’s minister for trade, industry and energy Sung Yun-mo.
Details of the MoU, including expected battery manufacturing capacity in Indonesia, have yet to be released.
Consortium
However, Antara said some of the batteries manufactured will be destined for use in Indonesia’s nascent electric vehicle industry – with a domestic EV manufacturing plant set to be built in the "near future”.
LG Energy Solution will work with a consortium of Indonesian state enterprises on the project, including state miners MIND ID and Aneka Tambang.
The mining firms were among state companies that announced plans to create a domestic EV battery manufacturing industry earlier this year, as part of a new company – Indonesia Battery Holding.
MIND ID recently completed its acquisition of a 20% stake in nickel miner PT Vale Indonesia.
The Brazil-based Vale Group controls 44.34% of PT Vale Indonesia, while Japan's Sumimoto Metal Mining (SMM) has a 15.93% stake.
MIND ID bought 14.9% of shares from Vale Group’s Canadian subsidiary, Vale Canada and the remaining 5.1% from SMM.
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The project will utilise raw materials mined in Indonesia’s North Maluku region and a manufacturing plant for precursors, cathodes and certain battery cell components will be developed in the Batang industrial area of Central Java, the country’s Antara news agency announced.
A memorandum of understanding (MoU) for the project was signed by the head of Indonesia's Investment Coordinating Board (BKPM), Bahlil Lahadalia, in Seoul, in the presence of South Korea’s minister for trade, industry and energy Sung Yun-mo.
Details of the MoU, including expected battery manufacturing capacity in Indonesia, have yet to be released.
Consortium
However, Antara said some of the batteries manufactured will be destined for use in Indonesia’s nascent electric vehicle industry – with a domestic EV manufacturing plant set to be built in the "near future”.
LG Energy Solution will work with a consortium of Indonesian state enterprises on the project, including state miners MIND ID and Aneka Tambang.
The mining firms were among state companies that announced plans to create a domestic EV battery manufacturing industry earlier this year, as part of a new company – Indonesia Battery Holding.
MIND ID recently completed its acquisition of a 20% stake in nickel miner PT Vale Indonesia.
The Brazil-based Vale Group controls 44.34% of PT Vale Indonesia, while Japan's Sumimoto Metal Mining (SMM) has a 15.93% stake.
MIND ID bought 14.9% of shares from Vale Group’s Canadian subsidiary, Vale Canada and the remaining 5.1% from SMM.
Related article in our archive: