A planned cooperation in developing electric vehicle battery between Indonesian state-owned mining company PT Aneka Tambang Tbk (Antam) and South Korean battery maker LG Energy Solution (LGES) is still unclear. State mining holding company MIND ID Chief Executive Officer Hendi Prio Santoso said that LG even left the negotiation of the project to a member of its Huayou Cobalt Co.Ltd. of China.
“We received the information from Antam that the status of LG is unclear. However, LG is encouraging a member of its consortium Huayou to continue the discussion and negotiation,” he told a hearing with the House of Representatives (DPR) Commission VII overseeing energy and mineral resources and industry on February 6, 2023.
Antam – through its subsidiary Indonesia Battery Corporation (IBC) – plans to set up a joint venture with LGES and South Korean carmaker Hyundai Motor Group to develop EV battery. The total investment for the projects is US$ 15 billion.
Santoso deemed that Huayou was an unequal partner for Antam to continue negotiation process. “We still want the presence of the complete consortium until the manufacturing of the EV battery. Whereas, Huayou is a company that develops smelter,” he explained.
Read also: Antam explores cooperation with EV battery global players
Previously, Antam CEO Nico Kanter said in October 2022 that the company would continue to explore cooperation with global players in the EV industry. Antam – through its subsidiary PT Indonesia Battery Corporation (IBC) – has also started its cooperation by setting up joint ventures with global players, including with Contemporary Amperex Technology Co., Limited (CATL) of China. The IBC and CATL’s subsidiary of Ningbo Contemporary Brunp Lygend Co., Ltd. (CBL) already established a joint venture.
MIND ID resources to develop EV
Santoso said that all resources under the management of MIND ID had the roles in the production of electric-base vehicles including tins, aluminum, nickel and also coal. “Coal can be processed into graphite of 17%, nickel for 16%, copper for 12%, aluminum 18% and tins 7%,” he explained.
He added that MIND ID would involve the downstream industry, like smelter development and participating in the development of cathode or precursor factory. MIND ID, through IBC, would also involve in the development of EV battery.
Both LGES and Hyundai signed a memorandum of understanding with the Indonesian government for a US$ 1.1 billion electric vehicle battery plant, which would produce 10 gigawatt-hours worth of NCMA (nickel, cobalt, manganese, aluminum) lithium-ion battery cells annually, enough for 150,000 electric vehicles, Korea Herald reported on July 29, 2021.
For the project, both Korean companies would establish a 50:50 joint venture. Indonesia would provide tax breaks and other incentives to support the stable operation of the envisioned plant, the firms said.
