Indonesia has declared its strategy to become a significant international force in the growing electric vehicle (EV) and energy storage battery industry, leveraging its ownership of almost 25pc of the world's known nickel resources.
The Indonesia Battery Corporation (IBC) has been established as a holding company to manage the country's integrated and end-to-end participation in the battery industry, supporting job creation, national energy resilience, and unlocking the potential of Indonesia's mineral resources, a government statement said.
Four state-controlled enterprises will each own 25pc in IBC. These include Mind ID, Antam, Pertamina and PLN. Antam is Indonesia's largest nickel ore producer and ferro-nickel producer. It also produces bauxite and alumina, as well as some precious metals.
"We aim to add more economic value in the energy and mining industries, especially the nickel industry, which is the main material used to manufacture EV batteries. We also aim to develop the EV industry's ecosystem and contribute to sustainable development goals," Erick Thohir, minister of state-owned enterprises said.
IBC will develop partnerships with third parties and intends to establish joint ventures across the EV battery value and supply chain including nickel processing, precursor materials, cathodes, battery cells and packs, energy storage systems and recycling.
Indonesia's conditions for partnerships and joint ventures will depend on foreign companies bringing investment into Indonesia's value chain, introducing technology and enabling Indonesia to become a global participant in a rapidly growing markets sector, Thohir said.
As part of its beneficiation strategy, Indonesia banned the export of nickel ore from the beginning of 2020.
