Jakarta, The Indonesia Post – Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia is optimistic that Indonesia is just one step away from becoming the world’s electric battery producer following LG’s commitment to investing in the integrated electric battery industry with a total of 9.8 billion US dollars or Rp. 142 trillion.
During the implementation ceremony for the second phase of the Integrated Electric Battery Industry Plan in the Batang Integrated Industrial Estate (KIT Batang), Central Java, Wednesday morning, Bahlil said the project would absorb up to 20,000 workers.
“Today we are groundbreaking a big investment. Indonesia must become one of the biggest players in the electric car battery ecosystem. Indonesia is time to think about being known for having a source of raw material for battery cells for electric vehicles,” he said in a statement in Jakarta, Wednesday.
Bahlil explained that the development of the integrated electric vehicle battery ecosystem could be carried out on the direct orders of the President to the Ministry of Investment.
“If it is fully implemented, the downstream investment made by LG will provide added value of 5.18 billion US dollars,” he said.
This integrated electric battery industry investment project starts from nickel mining and smelter located in Halmahera, North Maluku to the refinery, precursor and cathode industries, as well as the expansion of the battery cell industry to be built at KIT Batang, Central Java, to the electric battery recycling industry.
Previously, the implementation of the first phase of the integrated electric battery industry project had been realized through the groundbreaking of the construction of an electric vehicle battery cell factory in Karawang, West Java in September 2021.
President of LG Energy Solutions Lee Bang Soo revealed that this project occupies an area of 275 hectares in KIT Batang by applying the latest technology belonging to the LG consortium.
“I am here with a big vision to develop KIT Batang to become the most important electric vehicle industrial area in Southeast Asia. Through the LG Consortium, LG Energy Solution will support KIT Batang to become the world’s electric battery center,” said Lee.
This integrated electric battery industry project is the result of President Joko Widodo’s working visit in November 2019, which was followed up by the signing of a Memorandum of Understanding between the Ministry of Investment/BKPM and LG Energy Solution for the Grand Package investment on 18 December 2020.
The implementation of this ceremony is a follow-up to the signing of the Memorandum of Understanding and Framework Agreement between the LG Consortium and PT IBC for the Development of an Integrated Electric Vehicle Battery Ecosystem on April 14, 2022.
The investment collaboration between the LG consortium and the BUMN IBC consortium consists of LG Energy Solution, LG Chem, Huayou, LX International, Posco, Mind ID, Antam, Pertamina Power, PLN. (mhn/bbs)
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