The chairman of Chinese battery giant Contemporary Amperex Technology (CATL) says his company “is committed to helping Indonesia develop a “green” battery industry“, as global electric vehicle makers eye the country and its huge reserves of nickel despite environmental concerns.
Robin Zeng emphasized that two of CATL’s plants in China have been recognized by the World Economic Forum for their low carbon emission efforts. Its Ningde plant is part of the WEF’s so-called Global Lighthouse Network, a community of leading manufacturers applying advanced technologies to drive sustainability and other goals. Its Yibin facility is also certified as a “zero-emission plant.”
“These are the only battery factories in the world being certified … by the WEF,” Zeng told participants at the Business 20 summit in Bali on Sunday, a side event before the G-20 summit of rich and emerging nations on the island on Tuesday and Wednesday.
Zeng added CATL – the world’s biggest battery maker and a Tesla supplier – “will help Indonesia” make “everything green” along the country’s planned battery supply chain, from nickel mining activities to battery production. Zeng said CATL intends to deploy “huge” renewable sources and an energy storage system to support energy-intensive smelting activities in Indonesia.
Separately, the Indonesia Investment Authority (INA), the country’s sovereign wealth fund, on Monday announced the signing of a memorandum of understanding with CATL and Hong Kong-based CMB International Capital Corp. on the establishment of a Green Fund. INA in a news release said the fund will focus on the development of an “end-to-end” EV value chain in Indonesia. “With the parties’ concerted efforts, INA believes the size of the fund would reach up to $2 billion,” it said.
Indonesia holds 22% of the world’s reserves of nickel, an essential component in electric vehicle batteries, and is keen to tap the resource to secure a key role in the global EV supply chain by developing a domestic battery industry and EV manufacturing capacity. Indonesia’s nickel resources have attracted the likes of CATL and top South Korean battery maker LG Energy Solution.
As for automakers, South Korea’s Hyundai Motor earlier this year began full-scale production at its EV factory in Indonesia. Japan’s Toyota Motor and Chinese manufacturers are also showing interest. The chief of state-owned Indonesia Battery Corp. (IBC) told Nikkei Asia recently it is in discussion with European carmakers for investment, saying an announcement can be expected in the coming weeks.
Axel Maschka, executive vice president of Hyundai Mobis, Hyundai’s auto parts subsidiary, said it is “planning to establish a foothold” in Indonesia, adding that the country “can be an important hub” for the EV market in Southeast Asia and Australia. Maschka spoke during a separate forum held on Saturday in Bali by BloombergNEF (BNEF), a research provider focused on energy transition.
Pras Ganesh, executive vice president of Toyota Daihatsu Engineering & Manufacturing, told the same event Toyota too “would like to develop the EV value chain” and ecosystem in Indonesia.
“So we are very confident and bullish in terms of Indonesia and in terms of how it will play a role in our EV transition,” Ganesh said. “But in order to do so, we want to ensure that we do it in the right way and really tackle the critical issue, which is about decarbonization, and maintaining industrial growth and economic development for Indonesia.“
