CNGR to Commence Operations at South Kalimantan Battery Precursor Plant by Year-End 2025
Thu 16 Oct 2025, 14:10 PM
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CNGR Advanced Material Co, a China-based battery materials manufacturer, will begin operating its precursor plant at the Setangga Special Economic Zone (KEK Setangga) in Tanah Bumbu Regency, South Kalimantan, in December 2025.
The plan was conveyed by CNGR External Relations Director, Magdalena Veronika, at Minerba Convex 2025 in Jakarta, Thursday (Oct 16, 2025).
She said CNGR had initially planned to inaugurate and operate its precursor plant in Indonesia in 2021. However, that plan was hampered by the United States government’s Inflation Reduction Act (IRA).
“This year, CNGR will operate the precursor facility in Indonesia in December 2025, at KEK Setangga. Not at JIIPE, but in Setangga,” Magdalena said.
She explained that the US IRA was one of the reasons CNGR postponed the operation of the precursor plant in South Kalimantan, as the law limits trade involving products from China, Russia, and North Korea.
According to Magdalena, if the company had pushed ahead at that time, the precursor products would have been difficult to sell, especially since the electric vehicle (EV) market was still largely concentrated in the United States.
Over time, the EV market has expanded. Industry players no longer have to rely on the US market to sell products related to EV components.
On the other hand, processing and refining technologies for EV battery raw materials have continued to advance. Magdalena believes Asia is now the region with the most advanced processing technology.
“As the market evolves, we can see that when it comes to technology—particularly nickel in advanced materials—no one is more advanced than Asia. That’s why the world’s top metallurgy schools are in China,” she said.
For reference, KEK Setangga was designated by Indonesia’s 7th President, Joko Widodo, in June 2024. The 668.3-hectare zone is targeted to attract up to IDR 67.69 trillion in investment.
KEK Setangga is planned to host smelter industries, biodiesel and refinery operations, as well as fractionation industries to support the production of cooking oil, palm products, iron, rubber, and packaging.
Data from the Coordinating Ministry for Economic Affairs show that CNGR is a major Chinese group engaged in nickel processing from upstream to downstream. As an integrated nickel processor, CNGR produces ternary precursor synthesis and electrolytic nickel.
CNGR has already built nickel processing facilities in Morowali, North Morowali, Weda Bay, and Batulicin.
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