PT Chandra Asri Pacific Tbk. (TPIA) is set to construct a Chlor Alkali-Ethylene Dichloride (CA-EDC) plant that will produce a key raw material for electric vehicle (EV) battery pack components – caustic soda, totaling 400,000 tons per year. The construction of this new plant is scheduled to begin in early 2024, with Chandra Asri allocating US$800 million or approximately Rp12.45 trillion for the project, which is expected to take 28 months.
Edi Rivai, Director of Legal, External Affairs & Circular Economy at Chandra Asri, that in addition to caustic soda, the CA-EDC Plant will also produce ethylene dichloride as an intermediate chemical for polyvinyl chloride (PVC) production used in construction pipes, among other applications. “The CA-EDC Chandra Asri plant is targeted to have a production capacity of 400,000 tons per year of caustic soda [sodium hydroxide] and 500,000 tons per year of ethylene dichloride [EDC],” Edi said on Thursday, January 11, 2024.
Edi said further that caustic soda is commonly used in the production process for refining aluminum and nickel, which are components of EV battery packs. The construction of the CA-EDC Plant represents TPIA’s move into the midstream industry. The company believes that the new plant’s production capacity will support the domestic and global electric vehicle supply chain.
“The construction of this plant is our effort to facilitate the growth of the midstream industry to support Indonesia’s ambition in promoting the downstream value of minerals and reducing dependence on imported chemicals,” Edi said.
Regarding raw material readiness, Edi explained that industrial salt needs to be imported from Australia and India, as industrial salt for Chlor Alkali Plant production must have a minimum NaCl content of 97 percent and sufficient supply.
He assured that the industrial salt used in TPIA’s production process must meet industrial quality requirements and comply with the required quality and classification standards. “As for the raw material for ethylene dichloride, which is ethylene, we obtain it from our own plant’s production, so the entire production process will be more integrated,” he added.
