Chinese battery manufacturer Contemporary Amperex Technology Limited (CATL) is setting up a manufacturing plant for electric vehicle batteries in Indonesia and will be investing US$5.1 billion (RM20.88 billion) into the project, the Jakarta Globe reports.
According to Bahlil Lahadahlia, the head of the country’s Investment Coordinating Board (BKPM), CATL recently inked a deal with the government, and construction of the plant will commence sometime next year. “We signed the agreement when we were in China recently. The groundbreaking will commence in 2021,” he said.
The Shenzen-listed company is one of the world’s largest EV battery makers, and is a major supplier to a host of automakers, including Hyundai, Honda, Mercedes-Benz, Tesla, Toyota, Volkswagen and Volvo. Its move to set up a manufacturing facility in the republic follows on an earlier joint-venture to develop key components needed for battery manufacturing that are extracted from nickel ore.
Two years ago, plans were announced for a US$700 million (RM2.86 billion) project to make battery-grade nickel chemicals in Morowali, Central Sulawesi. Besides CATL, partners in the project are Chinese battery firm GEM, stainless-steel maker Tsingshan, Japanese trading firm Henwa and local industrial complex company Indonesia Morowali Industrial Park.
The latest investment announcement further outlines the country’s ambition to become a major player in lithium battery manufacturing. It has been reported that Indonesia, which has now banned the export of nickel ore, is looking to develop a full supply chain for nickel locally, not just in extracting battery chemicals but making batteries and eventually building EVs.
In October, it was reported that a group of Indonesian state-owned companies were forming a JV for EV battery production, and earlier this week, Indonesia restated it would meet Tesla to further discuss plans for the US automaker to set up a battery plant in the country.
The country is hedging on its nickel reserve, which accounts for 25% of the world’s proven reserve of the chemical element, to support that ambition. “It all comes down to our nickel. 85% of the raw material for the battery comes from Indonesia, so Indonesia must be a key player in renewable energy, especially in EV batteries,” Bahlil said.
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Tahniah NAP, MAI, Miti.
Crap
Another testimony of the failure of our automotive policy
You mean the failure of our affirmative policy and that naza tongkat kia, how survived so long
Car and EV battery manufacturers,seem to go to other Asean countries to set up multi billion Dollar plants.
Why? Is it due to our tax structure,constant U turns,corruption,and unfriendly/unattractive policies?
RM 21 Billion factory is a lot of money,interms of employment and spin off industries.
Already,we have record unemployment due to the pandemic.Bolehland cannot afford to lose such golden opportunities.
Once sayonara..it is goodbye.Like the James Bond movie,” You never Live twice.”
They come here bcoz their strict environmental law nowadays prevent them from mining the minerals needed and producing the batteries in highly toxic & dangerous conditions. Our lives are cheap compared to theirs after all so they find us attractive. New era colonisation and some lapped it up.
“Why?”
You didn’t read the article?
“It has been reported that Indonesia, which has now banned the export of nickel ore, is looking to develop a full supply chain for nickel locally”
Meanwhile in Malaysia we have flying cars…
$5.1Bil investment but how many more billions will be needed to heal the environment from mining for materials and from the production itself…
rest of the world: lets make new batteries for EVs!
malaysia: lets make a new national car! no, lets make a flying car. nvm lets forget them and waste public funds
Congrats…
EV battery production plant situated inside active rings of fire islands?
Meanwhile, Malaysian are very happy and satisfied with petrol masih hari-hari murah, and awaiting for their future of flying car…..
Are we smart enough?
I hope there will be a policy of returning the end of life or damaged batteries to the country of origin… They should responsible to the environment after manufacture it… Is not easy to dispose those materials.. Enough with our sungai pollution n water interruption la..