Page 12 - AsiaElec Week 16 2022

AsiaElec BATTERIES AsiaElec

LG Energy Solution to lead $9bn

investment in Indonesian EV

battery production

JAPAN SOUTH Korea’s LG Energy Solution is to lead a about 60% from $20,730 on January 4.
consortium investing $9bn in the electric vehicle Indonesia wants to develop nickel process-
(EV) battery supply chain in Indonesia in a bid ing and battery production facilities while also
to secure stable supplies of locally mined nickel reducing exports of the raw metal.
and to manage the production process more The country has the world’s largest nickel
efficiently. reserves with 21mn tonnes, according to US
The company has teamed LG Chem Ltd., Geological Survey (USGS) data. The agency
South Korea’s LX International Corp. and estimates Indonesia produced 760,000 tonnes
POSCO Holdings and China’s Zhejiang Huayou of nickel in 2020.
Cobalt Co., and on April 14 signed a non-bind- The government wants to develop nickel-re-
ing framework agreement set up the consortium, lated industries such as batteries and EVs into a
and intend to finalise the structure later. key export industry.
The group also includes Indonesia’s PT For example, LG Energy is developing a
Aneka Tambang (Antam), a state-run nickel $1.1bn battery cell plant in Karawang New
miner, and Indonesia Battery Corp. (IBC), also Industry City, near Jakarta, with an annual
state-run, and the Indonesian government, LG capacity of 10 GWh. It is scheduled to start com-
Energy said on April 18. mercial operations in the first half of 2024. The
“LG Energy expects the project to improve project will cost $950mn and involves a number
the battery business capability and profitability of South Korean companies, including Hyundai
by securing competitive raw materials in a stable Motor, Kia and Hyundai Mobis.
manner,” the company said in a statement. Shenzhen-listed Contemporary Amperex
The project will develop an “end-to-end value Technology (CATL) has also signed a similar
chain for EV batteries, including procuring raw $6bn deal with the Indonesian government, with
materials, producing key components such as battery production beginning in 2024.
cathodes, and manufacturing battery cells,” LG LG Energy Solution is also investing in other
Energy Solution said in a statement. battery factories worldwide, for example in Can-
Securing stable supplies of nickel is a key ele- ada, where in March it revealed plans to build
ment of developing EV batteries, with the metal a $41.bn, 45-GWh per year EV battery manu-
making up 80% of the battery models used in facturing facility in Windsor, Ontario, together
EVs. with Stellantis.
Nickel prices have been volatile recently LG Energy Solution aims to expand its battery
and have surged in recent months. The London production capacity in Canada, the US, Poland,
Metal Exchange (LME) three-month nickel Indonesia, China and South Korea. It is develop-
price closed at $33,175 per tonne on April 14, up ing five battery plants in North America.™

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