Chinese electric vehicle (EV) battery maker, CNGR Advance Material Co., and Singapore-based Rigqueza International Pte. Ltd., set up a nickel matte for lithium battery plant in Indonesia - Photo by CMMI Office

JAKARTA (TheInsiderStories) – Chinese electric vehicle (EV) battery maker, CNGR Advance Material Co., and Singapore-based Rigqueza International Pte. Ltd., set up a nickel matte for lithium battery plant in Indonesia, it announced on Thursday (04/09). The company will receive 40,000 tones of of nickel pig iron (NPI) from Tsingshan Holdings Group starting October 2021 for the factory.

Tsingshan is estimating to produces 600,000 tones of NPI in this year, while from 2022 to 2023 the output increases to 850,000 of NPI and 1.1 million of NPI, respectively. Silkroad Nickel Ltd., will supply 2.7 million wet metric tones (wmt) of high grade nickel ore to the giant stainless steel producer from China, from its nickel mines in Indonesia.

The Singapore-based mining company owned a nickel ore mine in Morowali, Central Sulawesi, and have signed a contract amounted to $90 million with Tsingshan‘ unit, PT Ekasa Yad Resources. Silkroad will send around 50,000 wmt per month starting April 2021 to December 2022.

After signed secured the supply, now, CNGR aims to produce nickel matte itself in Morowali Industrial Park in Central Sulawesi. The factory will produce 30,000 tones of nickel matte per year. In the disclosure at Shenzhen Stock Exchange, the management announced, CNGR will hold a 70 percent stake in the joint venture company, ZhongTsing New Energy, with Rigqueza hold the remaining.

The head of the EV Battery Project Acceleration Team, Agus Tjahajana, sees Indonesia has potential to grab new investment in the lithium battery projects up to $17 billion. The country also have ability to produces 125,000 units of EV and electric motors around 1.34 million units in this year.

In this year, the Southeast Asian largest economy is estimating to build Public EV charging station around 572 units and the public EV battery exchange station about 3,000 units. He explained with these potentials, the country could reduce fuel consumption by 0.44 million kilo liters per year.

Beside Chinese firms, some companies from other countries also has committed to build the EV battery factory in Indonesia, such as South Korea’ LG Consortium Ltd., joint with state-owned companies. The manufacturer had committed to invest $9.8 billion to make the first lithium battery plant for electric car in the archipelago.

Other South Korean company, Hyundai Motor Group is working to set up lithium battery plant in Indonesia. Both will utilize the new plant as a hub to target the future electric car market in Southeast Asia. Its expecting the joint venture contract will signs in July of this year.

The electric car giant from America, Tesla Inc., (NASDAQ: TSLA) was also serious about investing in Indonesia. Even though the movement seems quiet, the government admits that communication is continuing. Earlier, Contemporary Amperex Technology Co. Ltd., from China will invests around $10 billion.

Consortium of state-owned enterprises, consisting of PT Indonesia Asahan Aluminum (MIND ID), PT Aneka Tambang Tbk (IDX: ANTM), PT Pertamina, and PT Perusahaan Listrik Negara, also entered the lithium battery businesses. The project will be located in the Integrated Industrial Zones in Batang, Central Java.

Then, PT QMB New Energy Minerals has commit to invest US$700 million in Morowali. And, PT Halmahera Persada Lygend also has committed to pouring out Rp14.8 trillion ($1.06 billion) of investment in Halmahera, North Maluku.

In addition, PT International Chemical Industry disbursed Rp207.5 billion ($14.31 million) to produce as many as 25 million lithium ion cell batteries which are equivalent to 256 megawatts annually. The company will begin to enter the commercial pre-production stage at the end of 2020 and begin to enter the stage commercial production in this year.

US$1: Rp14,500

Written by Editorial Staff, Email: theinsiderstories@gmail.com