Indonesian state companies set up EV battery developer

[Indos]

AlhamduliLLAH

Korean consortium led by LG move on with project to create EV value chain in Indonesia

2021.05.07


LG Energy Solution-led consortium has entered a preliminary agreement with Indonesia’s state-run electric vehicle battery joint venture Industri Baterai Indonesia (IBI) with ultimate goal to establish a complete EV battery supply chain for Korean auto and battery makers in the Southeast Asian country.

LG Energy Solution, Korea’s leading EV battery maker, and its partners - LG Chem, LG International, Posco, and China’s Huayou, signed a heads of agreement, a non-binding investment agreement, with IBI on April 29, according to LG Energy Solution and Indonesian Investment Coordinating Board (BKPM) on Friday.

IBI is an EV battery joint venture with stakes invested by four Indonesian public companies – aluminum company Asahan Aluminum, mining company Aneka Tambang, oil and natural gas company Pertamina and electricity company Perusahaan Listrik Negara.

Following the signing of the heads of agreement, LG Energy Solution consortium and the Indonesian firm will speed up their project to build an EV supply chain in Indonesia. The Korean battery giant and the Indonesian government investment authority BKPM signed a memorandum of understanding for investments in Indonesia in December last year.

Indonesia is one of the world’s major producers of nickel, cobalt and manganese, key raw materials in making EV batteries.

The Southeast Asian country aspires to become a global hub of the EV industry by 2030. The Indonesian government has restricted nickel exports since 2019 and strived to pull in investments from global EV battery makers, including Korea’s LG Energy Solution and China’s CATL.

It is reported that LG Energy Solution is in negotiations for a package deal with the Southeast Asian country, which spans from investments in nickel mines and refining to EV battery production.

According to Indonesia’s government investment authority, the country’s EV and battery investment program is worth $9.8 billion.

Korea has been eager in exploring EV investments in the resource-rich nation.

LG Energy Solution consortium is in discussion for investment in EV battery sector. The battery maker is also in a separate discussion together with Hyundai Motor for investment in a battery cell factory in Indonesia. Hyundai Motor is pursuing to manufacture EVs at its existing car plant outside Jakarta.

If the Korean companies enter final binding deals with the Indonesian government, they would be able to build a complete electric car and battery supply chain in the most populous country in Southeast Asia.
By Pulse


[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]

Korean consortium led by LG move on with project to create EV value chain in Indonesia - Pulse by Maeil Business News Korea

LG Energy Solution-led consortium has entered a preliminary agreement with Indonesia’s state-run electric vehicle battery joint venture Industri Baterai Indonesia (IBI) with ultimate goal to establish a complete EV battery

pulsenews.co.kr

@Whizzack @nufix

 

[Indos]

NPI: Nickle Pig Iron

 

[Indos]

Indonesia is home to a fifth of the world's nickel reserves, the biggest deposit in one country, according to the U.S. Geological Survey. Mind Id and Aneka Tambang control 30% of Indonesia's total nickel reserves. The government reinstated a ban on exports of nickel ore in January last year, two years ahead of its planned date, to develop the downstream industry.

Indonesian state companies set up EV battery developer

Pertamina, PLN and two miners will hold stakes of 25% each in new venture

asia.nikkei.com

Mind ID currently control 20 % of PT VALE Indonesia stakes. VALE International is a Brazilian company. Min ID is now second largest stake holders after Vale International with 44 % stake.

PT VALE Indonesia is currently the largest nickle miner in Indonesia where they also processed the nickle using their nickle smelter.

Something that Korean and Chinese should think is that PT VALE Indonesia contract is almost over, it will over in 2025 and there is big possibility Indonesian state owned Min ID or Aneka Tambang (ANTAM) will take over as representation of Indonesian government.

Min ID put Adriansyah Chaniago, another Minang ethnic like me, as Vice President of PT Vale Indonesia.

Adriansyah Chaniago

NB: To explain further, any miner cannot buy land and but just lease from government, so when the contract is over, Government can take the land again and buy their mining facility (power plant, office building, and others) and continue the operation using state owned company as operator.

 

[Indos]

More information after latest MinID director talk in CNBC is that Indonesia Battery Holding is currently also having talk with 11 foreign companies to have possible partnership in EV battery production, beside two current foreign companies that have already been in MOU level, LG from Korea and CATL from China.

 

[Indos]

Mind ID currently control 20 % of PT VALE Indonesia stakes. VALE International is a Brazilian company. Min ID is now second largest stake holders after Vale International with 44 % stake.

PT VALE Indonesia is currently the largest nickle miner in Indonesia where they also processed the nickle using their nickle smelter.

Something that Korean and Chinese should think is that PT VALE Indonesia contract is almost over, it will over in 2025 and there is big possibility Indonesian state owned Min ID or Aneka Tambang (ANTAM) will take over as representation of Indonesian government.

Min ID put Adriansyah Chaniago, another Minang ethnic like me, as Vice President of PT Vale Indonesia.

Adriansyah Chaniago

View attachment 745229

NB: To explain further, any miner cannot buy land and but just lease from government, so when the contract is over, Government can take the land again and buy their mining facility (power plant, office building, and others) and continue the operation using state owned company as operator.

It is also clear from Min ID Director latest interview in CNBC that they currenly rely on nickle reserves own by state owned Aneka Tambang (ANTAM).

So 30 % number must come from Antam mine, and Min ID stake in PT VALE is not counted on PT Industri Battery Indonesia 30 percent nickle reserve out of total Indonesian current nickle reserve.

PT VALE Indonesia will release huge mining land in 2024 as consequence on the contract expiration with Indonesia government. So Mind ID and Antam can possibly get more mine land for nickle and chopper in the future.

According to the plan, state owned Battery holding and its partners is to process 50.000 ton of nickle every year and make them all EV battery products.

 

[Indos]

Growing demand for electric vehicles a boost for Indonesia’s economy
​

Rahul Gupta and Thomas Hansmann Singapore/Jakarta ● Fri, May 28, 2021


Globally, the rise of electric vehicles (EVs) represents a massive disruption to the road transportation sector. Already commonplace in many parts of the world, EVs are expected to represent more than 50 percent of new vehicle sales globally by 2035—though demand varies dramatically from country to country.

In Indonesia, this game-changing, environmentally friendlier technology is just starting to emerge as a significant force. Our research suggests that electrification in passenger cars, and corresponding growth in EV sales, could be accelerated by three key market drivers.

First, regulation: supportive national regulations and local laws have been major drivers of electric- vehicle adoption globally, often combined with incentives – such as subsidies for EV purchases or penalties for internal combustion engine (ICE) vehicles. In Norway, for example, consumers are exempt from value-added tax (VAT) on a new EV, pay no annual road tax or import taxes, and can use bus lanes to avoid congestion

Second, technology and cost: further reduction in technology costs will reduce the price difference between EVs and ICE vehicles. For now, however, batteries remain a dauntingly expensive component; while their price has decreased significantly in the last few years, further innovation is needed to make EVs more affordable and attractive to the consumer. Current research and development is focused on tweaking battery chemistry to increase range and reduce capital costs.

Third, consumer demand is shifting towards sustainable mobility, and purchase consideration of EVs is growing. Availability of vehicle models and infrastructure such as fast-charging and battery-swap stations have helped to alleviate customers’ concerns about flexibility and reliability.

In Indonesia, the EV sector is in its infancy. About 15,000 EVs, nearly all bikes, were sold in 2019, representing less than 0.2 percent of annual vehicle sales, according to research firm Research and Markets.

However, new analysis by McKinsey finds that sales will likely increase significantly over the coming years. When we studied a number of scenarios for the sector’s growth, our “reference scenario” found demand for passenger cars reaching 250,000 units per year by 2030 – or 16 percent of all new passenger car sales.

Demand for electric two-wheelers could reach 1.9 million units per year in that time frame, or 30 percent of new two-wheeler sales. In assessing the electrification potential of the country, we considered two alternative scenarios beyond our “reference scenario”.

Our “accelerated scenario” envisions local production and other conditions supporting EV take-up. Our “lagging scenario” is based on the current trajectory, in which Indonesia is challenged to attract manufacturers to develop EVs locally and the current 50-percent import tax applies.

In the accelerated scenario, we believe about 40 percent of both two-wheelers and cars sold could be electric by 2030, compared with 12 percent of two-wheelers and five percent of cars in the lagging scenario. In the accelerated scenario, electric two-wheelers achieve cost parity with locally produced ICE vehicles within two years, for both commercial-fleet and personal vehicles.

In the lagging scenario, cost parity is only achieved post 2025. For four-wheelers, commercial fleets could achieve cost parity today with current EV models and technology if locally produced (accelerated scenario) or in four years if imported (lagging scenario).

These projections have significant implications for Indonesia’s economic growth. Electrifying the transport sector could boost gross domestic product by Rp 400-500 trillion (US$28-35 billion) by 2030 in the accelerated scenario, with the driving force being a localized manufacturing and supply chain.

This would require the coordinated support of Indonesia’s regulators and state-owned enterprises all along the value chain. By encouraging consumer adoption and developing the industry, Indonesia’s leaders can grow the economy—all while advancing critical climate goals. Even in the lagging scenario, increased EV penetration by 2030 could abate 20 million metric tons of carbon emissions annually, rising to 40 million in the accelerated scenario.

We have identified three enablers for this desirable trajectory: increased long-term nickel production for batteries; local manufacturing; and supportive infrastructure. Even if all announced production projects go ahead, by 2030 the global supply of battery-grade nickel will fall short of the projected demand of two million metric tons. This presents an opportunity for Indonesia, which holds nearly a quarter of the world’s nickel reserves.

Indeed, in 2020, Indonesia introduced a ban on nickel-ore exports to encourage the development of local processing plants. At the same time, partnerships between international nickel refiners and local companies could help expand much-needed refining capacity.

Indonesia also has the potential to attract manufacturers, meeting local and some regional demand. There is an opportunity to set up 10 to 15 large vehicle-manufacturing facilities, the first four or five operational before 2025, with an average facility capacity of 150,000 two-wheeler units per annum.

Access to nickel-production facilities, competitive energy and labor prices, and a large domestic market make Indonesia an excellent location for battery manufacture, particularly for passenger cars and commercial vehicles.

The country could develop two or three facilities by 2030, large enough to compete at scale with regional battery manufacturers. Partnerships with international producers, together with investment incentives and export tax subsidies, would grow the local industry.

Alongside these initiatives, infrastructural support, such as a network of public charging stations and after-sale service centers, must be established. Simultaneously, measures could be implemented to ensure that all these processes – the extraction of raw materials, as well as battery production and other manufacturing cycles – minimize their environmental footprint.

It’s still early days for the adoption of electric vehicles in Indonesia, but the potential for positive impact on the economy and environment is huge. Collaboration between Government stakeholders, state-owned enterprises, and the private sector will be needed to build a local EV ecosystem—one with the potential to transform environments and economies.


*** Rahul Gupta is a senior expert based in McKinsey & Company’s Singapore office and Thomas Hansmann is a partner in McKinsey & Company’s Jakarta office.

Growing demand for electric vehicles a boost for Indonesia’s economy

Access to nickel-production facilities, competitive energy and labor prices, and a large domestic market make Indonesia an excellent location for battery manufacture, particularly for passenger cars and commercial vehicles.

www.thejakartapost.com

 

[Hamartia Antidote]

Yes battery is a third of the total costs however it will cost a fifth in 3 years and a tenth in 10 years. Industrial logics. Look at the cost of solar cell, smartphone, computer and you will get the idea how it will go.

I agree. What seems ridiculous today will be normal tomorrow. It isn't far fetched to think someday all the empty spaces between a car's body panels and the interior will be filled with some substance that can hold a charge. Even if it is 1/20 as efficient as lithium if it is light and cheap to make...that is where EVs will go.

 

[Indos]

I agree. What seems ridiculous today will be normal tomorrow. It isn't far fetched to think someday all the empty spaces between a car's body panels and the interior will be filled with some substance that can hold a charge. Even if it is 1/20 as efficient as lithium if it is light and cheap to make...that is where EVs will go.

Yup, but it will be crucial to master current technology and become part of battery supply chain now.

Indonesia is not only supported by its nickle reserves to grow EV industry, but also it has already had good national companies producing automotive parts for domestic and global needs.

These are all national companies

PT Astra Otoparts that dominates auto parts sales in the country for car and motorcycle and export its products to more than 40 countries

PT Bakrie Autoparts that dominate auto parts sales for truck and bus in the country which also export their products

PT Braja Mukti Cakre, JV Bakrie and Krama Yudha (Another national company)

Another national company that produce automobile and aerospace components

PT. Yogya Presisi Teknikatama Industri (PT.YPTI)

Automotive, medical equipment, and aircraft components maker

The company can also produce ICU ventilator with the help of government R&D institution and universities

For electronics part for EV we also have :


And state owned electronics company PT LEN Industry

 

[Indos]

I agree. What seems ridiculous today will be normal tomorrow. It isn't far fetched to think someday all the empty spaces between a car's body panels and the interior will be filled with some substance that can hold a charge. Even if it is 1/20 as efficient as lithium if it is light and cheap to make...that is where EVs will go.

Also dont forget that cars is not laptop or handphone, car prices is always going up based on history. Even today hand phone is also more expensive compared to Nokia period, but people still buy.

EV car despite more expensive but can be much more efficient in the operation cost compared to combustion engine cars. I also heard Tesla now can make competitive car for middle class segments while using current battery which is still expensive.

 

[Indos]

VW wants to make battery without using Lithium

 

[Indos]

Indonesia may restrict nickel pig iron, ferronickel smelters

Kamis, 24 Juni 2021 / 13:29 WIB

Sumber: Reuters | Editor: Herlina Kartika Dewi


KONTAN.CO.ID - JAKARTA. Indonesia's government is discussing with a parliament committee a plan to limit construction of smelters producing nickel pig iron or ferronickel in order to optimise nickel ore use for higher-value products, members of parliament said on Thursday.

Putting a restriction on construction of such plants is deemed necessary because of limited saprolite nickel ore reserves, the mining ministry said in a document presented to parliament this month. Eddy Soeparno, chairperson of the parliamentary committee, verified the document.

The government also said that many plants producing nickel pig iron (NPI) or ferronickel (FeNi) are expected to export their output directly, without further processing into stainless steel at home, according to the document.

Indonesia, a major nickel ore producer, banned exports of unprocessed ore last year to promote development of a nickel smelting industry.

Southeast Asia's biggest economy has 16 nickel smelters running, the majority producing NPI and FeNi. In five years, the number is expected to increase to 29, mining ministry data showed.

Baca Juga: Menteri ESDM tegaskan komitmen hilirisasi minerba

"This restriction is necessary because of the problem of low added value for exports of class 2 smelter products, such as FeNi and NPI," said member of parliament Mulyanto, who took part in the discussion. He has only one name.

"What needs to be promoted is exports of stainless steel, or at least nickel sulphate, so we can achieve higher value add because the price gap is quite wide," he said.

The government estimated that in 2025 every 100,000 tonnes of FeNi production could generate state revenue of $135.6 million, but production of the same amount of nickel sulphate could generate $153.75 million in revenue, the ministry said in the document.

The government is keen to develop a full nickel supply chain, including production of nickel sulphate, which is used in electric vehicles batteries, to producing the batteries and assembling electric vehicles.

However, Mulyanto said this was still a government proposal that required more discussion and that no details had been clearly defined.

A spokeperson for the mining ministry declined to comment about the discussion. A senior ministry official did not respond to a request from Reuters for comment.

A spokesperson for Coordinating Minister Luhut Pandjaitan, who oversees the mining sector, said no policy decision had been reached but the government had been reviewing the supply and demand gap for mineral products.

"The mineral industry is very important for Indonesia's development," said spokesperson Jodi Mahardi.

"Therefore our sectoral strategy is to become self-reliant, increase refining capacity to make Indonesia a competitive and diversified economy."

Indonesia may restrict nickel pig iron, ferronickel smelters

Indonesia's government is discussing with a parliament committee a plan to limit construction of smelters producing nickel pig iron.

english.kontan.co.id

 

[Indos]

State owned electronics company, PT LEN Industry inshaAllah will build solar cell factory for solar panel Industry in West Java. If finished, PT LEN Industry can increase the local content of its solar panel from 47 % into 60 %

Source:

Len Industri Bangun Pabrik Panel Surya dengan Nilai Investasi Rp 2 Triliun

PT Len Industri mempersiapkan pembangunan pabrik solar cell di Cikarang, Jawa Barat dengan nilai investasi mencapai Rp 2 triliun.

money.kompas.com

.

PT LEN Industry solar panel production

 

[Indos]

Indonesia's Battery Giant Needs $15.3b in Investments

A man recharges an electric car at a Perusahaan Listrik Negara's (PLN) recharging facility in Tangerang, Banten, on July 1, 2020. (Antara Photo/Muhammad Iqbal)



BY :JAKARTA GLOBE
JULY 15, 2021


Jakarta. Industri Baterai Indonesia, an electric vehicle battery subsidiary of state-owned largest miners, has estimated that it would need $15.3 billion in total investment to develop an integrated electric vehicle battery, the company top executive said on Wednesday.

Toto Nugroho, the president director of Industri Baterai Indonesia, said the investment would cover processes from the mining of the battery raw materials, smelting/ refining, battery chemicals manufacturing, battery cells manufacturing, all the way to the recycling of used batteries.

"We need an investment of $15 billion, which is a challenge in itself. There is a timeline of around 3-4 years," Toto said in a session discussing the environmentally friendly automotive industry at the 2021 Investor Daily Summit on Wednesday.

According to a company's presentation, Industri Baterai Indonesia would need $160 million in investment to mine limonite and saprolite, metallic ores that rich in nickel, the main ingredient for lithium-ion batteries.

Next, the company would need to invest in smelting facilities, including rotary kiln electric furnace (RKEF) technology and another using high-pressure acid leaching (HPAL) technology, to process the ores. Industri Baterai Indonesia would need $1.3 billion in investment for each smelting facility.

The battery precursor materials and cathode would need $1.8 billion and $3.8 billion in investment, respectively, while the production of the battery cell itself may need an upfront cost of $6.73 billion. For battery recycling, Industri Baterai Indonesia sought to put in $30 million upfront capital.

Industri Baterai Indonesia’s presentation also mentions an energy storage system (ESS) with an investment of $40 million. This ESS stores energy generated by renewables such as solar panels.

"We are working with two big global players, LG Energy Solution from South Korea and CATL from China," said Toto.

He said the company expected the integrated production line could produce battery cells with a total capacity of up to 140 gigawatt-hour (GWh) per year.

Industri Baterai Indonesia has four shareholders with 25 percent each, namely the state-owned energy company Pertamina, state-controlled miner Antam, state utility firm Perusahaan Listrik Negara (PLN), and the state mining holding Indonesia Asahan Aluminum, also known as Mining Industry Indonesia (Mind ID).

Indonesia's Battery Giant Needs $15.3b in Investments

Industri Baterai Indonesia will develop an integrated battery business that covers mining, smelting, manufacturing, to recycling.

jakartaglobe.id

 

[Indos]

AlhamduliLLAH

Investment Minister: LG Battery Factory Ready for Groundbreaking 15 September 2021

TEMPO.CO, Jakarta - The initial construction or groundbreaking of the LG consortium electric vehicle battery factory in Bekasi, West Java, will begin September 15, 2021. This is part of a US$ 9.8 billion project undertaken by LG and the Indonesia Battery Corporation (IBC) .

"God willing, September 15 will be groundbreaking ," said Investment Minister Bahlil Lahadalia in a webinar in Jakarta, Wednesday, September 8, 2021.

Previously, this project was agreed upon after the MoU between the Investment Coordinating Board (BKPM) and the LG consortium in December 2020. This consortium consists of LG Energy Solution, LG Chem, LG International, POSCO, and Huayou Holding.

They will partner with IBC, which consists of PT Indonesia Asahan Aluminum (Inalum), PT Aneka Tambang Tbk. (ANTM), PT Pertamina, and PT Perusahaan Listrik Negara. Then, IBC also partnered with Contemporary Amperex Technology Co. Ltd (CATL) from China.

They will build a factory in the Batang Integrated Industrial Estate (KIT), Central Java. But for the first phase, the project will actually begin first by building a plant cell battery ( cell battery ) in Kota Deltamas, Bekasi, West Java.

Not only LG, this project will also involve Hyundai Motor Company, KIA Corporation, and Hyundari Mobis. The cell battery factory will be built with a capacity of 10 Gigawaat Hour (GWH). The investment funds issued for this initial stage amounted to US$ 1.2 billion.

Menteri Investasi: Pabrik Baterai LG Siap Groundbreaking 15 September 2021

Pembangunan perdana alias groundbreaking pabrik baterai kendaraan listrik konsorsium LG di Bekasi, Jawa Barat, akan dimulai 15 September 2021.

bisnis.tempo.co

 

[Indos]

Antam Controls 51 Percent Shares in Battery EV Mining Industry with CBL and LG​

ANTAM Smelter

President Director of Indonesia Battery Corporation (IBC) Toto Nugroho, gave an explanation about the electric vehicle battery (EV battery) industry development project integrated with LG Energy Solution and PT Ningbo Contemporary Brunp Lygend Co., Ltd (CBL).


The development of the EV battery industry with LG starts from the mining stage, Rotary Kiln Electric Furnace (RKEF), HPAL, nickel sulfate, precursors, cathodes, to cell batteries. Meanwhile, the development of the EV battery industry with CBL has the same stages as LG, but there is an additional stage of battery recycling.


"Especially for the mining process, the majority of course is in Antam (at 51 percent). In terms of partners, they (CBL and LG) are minorities," said Toto in a Hearing Meeting (RDP) with Commission VI of the House of Representatives, Monday (12/9).

For the development of the LG project, Toto revealed that 49 percent of the shareholders in the mining phase are LG. In the next stage until the cell battery, LG's stock composition dominates, while Antam and IBC are still negotiating to hold a 30-40 percent stake.

"The composition of (LG's) shares is large because in terms of investment it is quite large, those who master the technology and the market. Our composition of the minority is already quite positive. The more downstream, they are mostly because they are offtakers," he said.

Toto said LG and CBL partners want to focus on battery development starting from the HPAL stage for export so that it is profitable for them. This opportunity is the momentum of Antam and IBC to negotiate for LG and CBL to invest not only in the HPAL stage, but already in the form of battery cells.

"The battery recycling stage in the CBL is very good, because we can take the batteries that have been used back," continued Toto.

Toto detailed, the stage of RKEF and HPAL processing nickel sulfate raw materials. Nickel sulfate is what is sought after all over the world, as nickel sulfate becomes the basic material for batteries.

MSN

www.msn.com