- Indonesia launches an anode plant for EV batteries, built by China’s BTR New Materials Group and Singapore’s Stellar Investment.
- The Indonesian government’s proactive approach has already lured major battery and EV manufacturers to invest in domestic production.
OUR TAKE
Indonesian President Joko Widodo has announced the launch of an anode material plant jointly invested and built by China’s BTR New Materials Group and Singapore’s Stellar, a move that marks a solid step forward in building the country’s domestic electric vehicle industry chain. The move not only demonstrates Indonesia’s determination to utilise its own resource advantages to promote the development of the industry, but also foreshadows the emerging role the country may play in the global EV supply chain.
–Elodie Qian, BTW reporter
What happened
Joko Widodo, President of Indonesia, officially opened an anode materials plant built by China’s BTR New Material Group and Singapore’s Stellar Investment on Wednesday, marking a significant move in the country’s strategy to establish a domestic electric vehicle (EV) industry.
The plant is set to produce 80,000 metric tons of anode materials annually, as reported by the Coordinating Ministry of Maritime and Investment Affairs. The investment for the first phase amounts to a substantial $478 million, although the commencement of production is yet to be scheduled.
Indonesia is capitalizing on its rich mineral resources, particularly nickel, which is a crucial element for battery cathodes.
President Jokowi, who is widely known, highlighted the country’s foresight in developing an EV ecosystem during the formal opening ceremony in Kendal, Central Java. “Our decision several years back to develop a big EV ecosystem is starting to materialise in Indonesia, starting when we banned export of raw nickel in 2020,” he said.
Also read: Musk considering EV battery plant in Indonesia
Why it’s important
BTR will utilise graphite products from its Morowali plant in Indonesia for the anode materials production. The company is also gearing up to commence the second phase of construction in the fourth quarter of this year, aiming to double the plant’s capacity to 160,000 tons per annum, as stated by Senior Minister Luhut Pandjaitan.
Chairman of BTR New Material Group, He Xueqin, announced an additional investment of $299 million for the second phase, positioning Indonesia to join the ranks of major global anode material producers upon completion.
“Indonesia will become the second largest negative material producer in the world, second only to China. The local project will also fill the gap in Indonesia and even the entire ASEAN battery industry.” he said.
The Indonesian government’s proactive approach has already lured major battery and EV manufacturers to invest in domestic production.
South Korea’s Hyundai Motor Group and LG Energy Solution have taken the lead by launching the country’s first battery cell production line last month, integrated with Hyundai’s plant where they plan to manufacture EVs using batteries made in Indonesia.
