Tuesday, July 16, 2024

Indonesia to become world’s fourth largest copper cathode producer by 2025

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The Ministry of Energy and Mineral Resources (ESDM) says that Indonesia is poised to become the world’s fourth-largest producer of copper cathodes next year, aligning with the nation’s ambition to lead in battery and electric vehicle production.

Irwandy Arif, Expert Staff to the ESDM Minister for Mineral and Coal Governance Acceleration, says that this projection supports the country’s strategic push to become a major producer of batteries and electric vehicles, both of which require copper cathodes as a critical raw material.

“If we become the fourth-largest producer, we are expected to meet domestic needs for the development of these strategic industries,” Irwandy said during a meeting at the ESDM Ministry in Jakarta on Friday, June 21, 2024.

Indonesia has set an ambitious target to produce 400,000 electric vehicles by 2025, a number that is expected to increase in subsequent years, driving up the demand for copper cathodes.

Tony Wenas, President Director of PT Freeport Indonesia (PTFI), echoed this sentiment, stating that the current high demand for copper will benefit Indonesia significantly.

“With the high demand for copper, this is a beneficial position for Indonesia,” Tony said.

Indonesia can achieve this ranking with the operations of just two companies: PT Freeport Indonesia and Amman Mineral. Both companies are currently developing copper smelting and refining facilities.

The full operation of these smelters will enable Indonesia to join the ranks of major copper cathode producers such as China, Chile, Congo, Japan, and Russia.

Tony emphasized that the demand for copper is set to rise further, driven by the requirements of renewable energy power plants. Hydropower plants need 1.5 tons of copper per megawatt, while solar power plants require four tons of copper per megawatt.

“Electric vehicles need four times more copper than conventional vehicles. Thus, the potential for copper in the future is very promising,” Tony concluded.

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