CATL and LG Chem may invest in Indonesia's battery supply chain

According to foreign media reports, the Indonesian government said that the two largest electric vehicle battery processors in the world, CATL and LG Chem, have stated that they may join the country’s battery supply chain investment plan, which may add to Indonesia’s electric vehicle supply chain. 20 billion US dollars of investment. Septian Hario Seto, deputy director of investment coordination and mining affairs at the Indonesian Ministry of Maritime Affairs and Investment Coordination, said that last month, the two companies signed an early agreement with Indonesian state-owned mining company AnekaTambangTbk, aiming to use the latter’s nickel output to process higher value. Battery products. According to Seto, this strategy includes the development of new capabilities for metal production and battery packaging. 'This is a technology competition. LG Chem and CATL are the two leaders in the field of lithium battery technology.' It is reported that LG Chem and Aneka Tambang have agreed to discuss a joint venture approach, but the plan is still at a very early stage. LG Chem said that a complete agreement will help the company ensure a stable source of nickel materials. CATL declined to comment. Prior to this, CATL had joined a project to build a nickel processing plant and other battery supply chain infrastructure in central Sulawesi. Aneka Tambang said that the company is studying cooperation with third parties and plans to develop the downstream industry of nickel ore. CATL and LG Chem are one of the key suppliers of lithium batteries. (Image source: Bloomberg) On October 14, as of 12:52 pm in Jakarta, AnekaTambang's stock price rose by 18%. Indonesia's nickel reserves account for nearly a quarter of the world, and nickel is a key metal for electric vehicles. Indonesia is seeking to use this advantage, coupled with low electricity prices and low-cost manufacturing, to create a domestic battery industry. Indonesia has nearly a quarter of the world's nickel reserves. (Image source: Bloomberg) The Indonesian government has announced a $30 billion project (including existing commitments from LG Chem and CATL) aimed at becoming a processing center for battery materials, battery packs themselves, and electric vehicles. The additional investment will further support Indonesian President Joko Widodo's ambition to develop the country into a key regional center for the electric vehicle industry. Companies including Indonesian state-owned Asahan Aluminum Corporation (Inalum) and state-owned power processor PTPerusahaanListrik Negara will cooperate under the Indonesian Battery Holding Company. Inalum president Orias Petrus said that the company will process lithium batteries and cooperate with companies such as AnekaTambang. Bloomberg NEF analyst AllanRay Restauro said that Indonesia’s lack of existing lithium battery processing facilities makes the task of developing an end-to-end electric vehicle industry more challenging; at the same time, Indonesia also lags behind neighboring countries in terms of Ru0026D expenditure. Restauro said that Indonesia needs to do more to stimulate local demand for electric vehicles. Seto said that efforts are currently being made to increase the output of nickel materials for batteries through the development of four high-pressure acid leaching plants. These plants are able to convert Indonesia's lower-quality nickel ore into chemicals that can be used in batteries. If the environmental approval and waste management plan are completed, at least one factory can start processing before the end of next year. Disclaimer: Some pictures and content of articles published on this site are from the Internet, please contact to delete if there is any infringement. Previous: What are the important characteristics of lithium batteries