Indonesia plans battery production in public sector

Indonesia laid down its plans to have a complete battery production line onshore, with a stateowned holding firm to be set up by June.

The country has drafted an "end-to-end development" plan that would see four state firms supplying nickel ore, processing nickel sulfate and cobalt sulfate, and then producing cathodes and batteries, Agus Tjahajana, who heads the task force on electric-vehicle development, said in a Thursday seminar.

Resource-rich Indonesia, home to a quarter of the world's nickel reserves, has set its sights on moving up the supply chain to become a global hub for battery-making. The surge in demand for batteries, used to power everything from mobile phones to electric vehicles, has become a tailwind for Southeast Asia's largest economy as it seeks a way out of a recession.

"Indonesia will hold everything from upstream to downstream involving nickel and electric batteries in the battery holding company," Ministry of State-Owned Enterprises spokesperson Arya Sinulingga said. "We have to proceed quickly."

Miner PT Aneka Tambang will focus on nickel ore, while PT Indonesia Asahan Aluminium, known as Inalum, and energy holding company PT Pertamina will oversee the production of battery and cell components. Pertamina and power producer PT Perusahaan Listrik Negara will look after electricity supply and infrastructure. Each of the state firms will hold a 25 per cent stake in the Indonesian Battery Industry holding firm, which will be set up by June. The potential projects include a 195 GW/hour factory with capacity to produce 150,000 tonnes of nickel ore a year, he said.