A group of state-owned companies in Indonesia will form a joint venture to produce Li-ion batteries. Partners in the new Indonesia Battery Holding joint venture include two mining firms: Mining Industry Indonesia (MIND) and PT Aneka Tambang; as well as state power utility Perusahan Listrik Negara (PLN), and state oil company Pertamina.
Indonesia Battery Holding aims to be involved in the entire battery value chain, including producing battery minerals and chemicals, manufacturing its own cells, and recycling batteries. The company says it will collaborate with Chinese and South Korean partners on projects valued at $12 billion.
Indonesia is the world’s largest producer of nickel ore, a key ingredient in producing the battery-quality nickel sulfate used in cathodes. The country is building up an EV battery industry as part of its national strategy, and aims to make cells by 2023.
Research and consulting firm Roskill believes the formation of this state-owned JV will place Indonesia in a strong position to establish its presence in the market. The Indonesia Battery venture is also targeting integration throughout the downstream battery supply chain. However, advanced manufacturing technology, including the synthesis of high-quality battery materials (precursor, cathode, anode, electrolyte) and battery production, is not in place in Indonesia yet, which will pose a critical challenge to the industry’s development.