Several companies have shown an interest in investing in the development of the electric vehicle (EV) ecosystem in Indonesia, according to Minister of Investment and Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia.

After attending a limited meeting chaired by President Joko Widodo at the Presidential Palace in Jakarta on Friday, the minister shared the names of three such companies: LG from South Korea, Contemporary Amperex Technology Co. Limited (CATL) from China, and Britishvolt from England.

Lahadalia said that investment from LG and CATL will be used for creating an EV ecosystem from upstream to downstream, which will begin this year.

LG and CATL have adopted a similar mechanism, namely collaboration with a number of local companies under the state-owned holding mining company MIND ID, he disclosed.

During the mining stage, both will work with PT ANTAM. Then, for smelter development, they will work with the Indonesian Battery Industry or Indonesia Battery Corporation (IBC), a state-owned enterprise whose shares are owned by ANTAM, MIND ID, PLN, and Pertamina.

"They will also process the cell battery cathode precursors and recycling. So this is a whole ecosystem that may become the first in the world because other cycles in other countries are only partial," he informed.

In terms of investment value, LG will provide US$9.8 billion in capital and CATL around US$6 billion to Indonesia, the minister said.

"This is what is currently running this year," he added.

Regarding the location, the minister informed that the smelter will be set up close to the mining location, while the cathode precursor factory will be partly situated in Batang, Central Java.

"CATL determined the location between Batang and North Kalimantan on their own," Lahadalia stated.

Speaking about the investment from Britishvolt, he said he believes that the licensing process is almost complete, but estimated that the construction will start only in the second or third quarter of 2023.

"Britishvolt is working with a national company. Right now, the licensing process is almost complete, but the initial development may not be carried out in the first quarter, maybe in the second or third quarter," he explained.

Source: https://en.antaranews.com/news/269370/minister-outlines-ev-ecosystem-investments