State-owned mining company PT Aneka Tambang (Antam) Tbk continues to explore cooperation with global players in the electric vehicles (EV) industry. The company has taken this measure to utilize the huge potential of EV industry’s growth in the future.
“We cannot miss this opportunity and we have to enter the electric battery projects. From our point of view, this [battery] component is very important in the development of electric vehicle ecosystem. We should have partnership with strategic partners, and certainly they are global players,” Antam CEO Nico Kanter said at the Investor Daily Summit 2022 in Jakarta on October 12, 2022.
Antam – through its subsidiary PT Indonesia Battery Corporation (IBC) – has 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. IBC also set up a joint venture with South Korean firms of PT LG Energy Solutions (LGES) and Hyundai Motor Group. The total investment for the projects is US$ 15 billion. The result of the joint ventures will operate in the fourth quarter of 2022.
“CATL and LG are number one and number two producers of EV battery. We are exploring cooperation with the biggest precursor producers. We can not disclose further because it is under discussion,” Kanter said.
He added that as a member of Indonesia’s mining holding company MIND ID, Antam has tasked by the government to support the development of downstream industry in mining sector.
“One of the key is raw materials for electric battery managed by Antam. We have also resources and reserves that we should be grateful and that we can exploit them well,” he said.
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Kanter explained that Antam has nickel ores reserves of 382 millions tons, consisting of 333 millions tons of high grade nickels (saprolit) and 49 millions tons of low grade nickles ores (limonit). Saprolite is used as raw materials for stainless steels while limonite will be used as raw materials for electric vehicle battery.
“If we see the resources, we have 1.4 billions of nickel ores, in which 900 millions tons are saprolite and more than 500 millions tons are limonite. Antam also has resources in various areas in Indonesia and we also create a joint venture to exploit this resources,” he added.
Kanter said Antam’s entry to electric vehicle battery ecosystem would have a positive impact for companies as well as from the perspective of sustainability of the business and financial performance. The project also will benefit from tax side and create more jobs.
“We believe in a projection that Indonesia’s economy will reach the top five globally by 2035. We must prepare ourselves. So, we can be a country that contribute to the EV battery,” he said.
