President Jokowi Inaugurates Factory of Anode Materials for Lithium-Ion Batteries in C. Java

President Jokowi inaugurates the Factory of Anode Materials for Lithium-Ion Batteries of PT Indonesia BTR New Energy Material in Kendal Special Economic Zone, Kendal regency, Central Java province, Wednesday (08/07). (Photo by: BPMI of Presidential Secretariat/Muhclis Jr)

President Joko “Jokowi” Widodo, Wednesday (08/07), inaugurated the Factory of Anode Materials for Lithium-Ion Batteries of PT Indonesia BTR New Energy Material in the Kendal Special Economic Zone (SEZ), Kendal regency, Central Java province.

“I highly appreciate the construction of this factory. Thus, the grand plan to develop an integrated and strong electric vehicle (EV) ecosystem can be realized one by one,” he said.

The President stated that the EV ecosystem development plan launched several years ago has shown significant results while also pointing out initial challenges such as the nickel export ban that sparked a debate and a lawsuit filed by the European Union.

“Our current nickel export value is US$34 billion. It has skyrocketed from initially Rp33 trillion to approximately Rp510 trillion. It is a huge leap despite disapproval from many parties at the beginning,” he said.

President Jokowi also highlighted the development of the nickel and bauxite smelter industry in several regions, including the nickel smelter and its derivatives in Morowali and Weda Bay, the smelter of PT Freeport and PT Amman in Sumbawa and Gresik, and the bauxite smelter in Mempawah regency, West Kalimantan province.

“If the smelters are ready to operate, the ecosystem will be built. We will be able to enter the global supply chain, which will provide a huge added value. It can also resolve employment issues and spur our economic growth,” he said.

On that occasion, the President commended the speed of the factory construction, which only took 10 months to complete since the [cooperation agreement] signing in Beijing, while expressing hope that the factory can produce 80,000 tons of anode materials annually in the next stage, which equals to 1.5 million electric cars.

“[The capacity] is enormous, especially with the addition of 80,000 tons of production in this industry. It means there will be three million electric cars per year. It’s a great figure, so we will be the largest EV battery and EV supplier,” he said while underscoring the Government’s commitment to continuously developing a strong and integrated EV ecosystem and utilizing local resources, such as nickel, cobalt, and manganese.

The President also expressed hope that the measure can strengthen Indonesia’s position in the global lithium-ion battery and EV market.

For the record, PT Indonesia BTR New Energy Material is currently the largest anode factory in the world. Once the first and second stages are complete, Indonesia is forecast to be the world’s second-largest producer of anode materials for lithium-ion batteries with a total production of 160,000 tons. (BPMI of Presidential Secretariat/FID/DNS) (DH/MUR)