State-run firms, PT Aneka Tambang Tbk (IDX: ANTM), PT Perusahan Listrik Negara (PLN), and PT Pertamina, plans to form a new venture company called Indonesia Battery Holding - Photo: Special

JAKARTA (TheInsiderStories) – State-run firms, PT Aneka Tambang Tbk (IDX: ANTM), PT Perusahan Listrik Negara (PLN), and PT Pertamina, plans to form a new venture company called Indonesia Battery Holding. The venture firm will operates an electric vehicle (EV) battery plant.

“In the upstream there is ANTAM, the intermediate one is Pertamina, and downstream there is PLN” said CEO of PT Indonesia Asahan Aluminium (MIND ID), Orias Petrus Moedak, in a virtual discussion on Tuesday (10/13).

The former deputy director of PT Freeport Indonesia, stated, currently there are two potential partners from China and South Korea who are being approached to become and investors in the new EV battery factory. He said, the investment values of this project was estimated around US$12 billion.

To support the planned, said the CEO, ANTAM now worked on related EV battery like high-pressure acid leaching and rotary kiln electric furnace smelter projects valued $2 billion to $3 billion, respectively. But, he did not give the details on the two projects.

Previously, minister of state own enterprises, Erick Thohir, revealed, after MIND ID’ purchase PT Vale Indonesia Tbk (IDX: INCO) shares with worth of Rp5.5 trillion ($374.15 million), the new unit its expecting would support the downstream projects of the holding mining company. With the share ownership, will allow MIND ID to secure the supply of raw materials, especially nickel.

He emphasized that since the government banned nickel exports as of Jan. 1, 2020, MIND ID has been faced with a challenges to innovate and restructure the business models. Based on the reasoned, now the ministry prepare this company to enter the EV battery industry, which currently 27.9 percent of the market share controlled by China.

Indonesia, he asserted, only became a producer and exporter of raw goods with a share of 27 percent in the global market. The plan will be executed with the construction of a lithium-ion factory which is planned to be near two nickel mines owned by ANTAM in Tanjung Buli, East Halmahera and in North Konawe, Southeast Sulawesi.

MIND ID is currently managed ANTAM, INCO, PT Bukit Asam Tbk (IDX:PTBA), PT Timah Tbk (IDX: TINS), and Freeport Indonesia.

US$1: Rp14,700

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