Indonesia sees 32 billion USD investment in EV battery chain

Indonesia sees 32 billion USD investment in EV battery chain (Photo:auto.economictimes.indiatimes.com)

Jakarta (VNA) - Indonesia's Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan on May 30 revealed that the country can receive an estimated 31.9 billion USD in investments for project tied to battery supply chain by 2026.

According to the minister, with the country rich in nickel used in batteries for electric vehicles (EV), the government wants to see more investment in nickel downstream sectors to boost economic growth.

He said the Kalimantan region can receive 12.35 billion USD in investment while North Maluku and Sulawesi can attract 9.78 billion USD and 9.84 billion USD in battery supply chain projects, respectively.

To encourage investment from emissions-conscious investors, the Indonesian government has touted the North Kalimantan industrial park on Borneo island as "green”, with a plan to power activities there with hydropower. Companies have committed to producing aluminium there.

Luhut said that the North Kalimantan industrial park can house projects that could produce batteries with a total capacity of 265 GW hours and petrochemical, iron and steel, alumina and silicon industries.

Indonesia is known for its abundant coal supply and use, and the country is trying to cut emissions and promote tougher environmental, social and governance (ESG) standards.

The minister warned that his ministry will shut down factories which do not comply with ESG, adding that Indonesia will not allow deep sea tailings disposal - a controversial method of releasing waste materials into the ocean - for high-pressure acid leaching (HPAL) operations, and will encourage companies to turn the waste into useful materials./.