Indonesia is attempting to use its mineral industry to support the development of electric vehicle and renewable energy industry.
Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, said that Indonesia has already seven units of bauxite smelters, seven units of nickel smelters,
1 unit of ferro smelter and 1 unit of copper smelter.
“Those smelters have to produce intermediate products ,” he said on Friday, August 2, 2024, while citing smelter grade alumina, CU anode, Chemical grade alumina, CU Cathode, Ferro Nickel ,NPI, Nickel Matte, Cu Concentrate, Sponge Iron, and Pig Iron.
The government, Arifin said, is encouraging the development of intermediate industries, such as MHP, Sinter, Anode Slimes, and Gypsum; downstream industry such as Aluminium Alloy, Iron Ingot, Powder, Ni Sulfate; and end products such as Al Square Bar, Al Tube, Semiconductor, Stainless Steel pipe and Tube, CRC, road/bar and steel bar.
Besides, the government is also evaluating nickel-based intermediate products industry that produce sunsets and non high added value products.The government exercise moratorium on the construction of new factories or smelters. After the moratorium, the government will consider the development of new downstream industry while monitoring demand’s constellation at global level.
“For example on Nickle Pig Iron, the Industry Ministry has agreed not to built new NPI smelter or RKEF,” he explained.
Nickel downstream
Indonesia has nickel 17.33 billion nickel resources and 5 billion nickel reserves.The huge potential of nickels becomes Indonesia capital to develop battery industry for national and global needs.
In the 2024 budget and work plan, the government has agreed to produce 240 million tons of nickels. In the previous year, the need of nickel smelters is 220 million tons.
“We need to control the production in order to have additional and better prospects and to supports energy transition program and EVs industry,” Arifin said.
To achieve 20 million four-wheeled electric vehicles in 2030 , Indonesia needs 780 GWh. The domestic smelter can produce raw materials equal to 373 GWh. ” There are opportunities to invest in EV battery for 407 GWh.
