British consortium commits $9 Billion investment in Indonesian mining and EV battery sectors

Indonesia, known for its vast nickel reserves, aims to attract multinational companies and foster downstream industries for electric vehicle (EV) battery production. To achieve this, a British consortium, including mining giant Glencore, has announced plans to invest approximately $9 billion in Indonesia’s mining and EV battery sectors. This significant investment is expected to drive the development of an industrial park in the Bantaeng region of Sulawesi island, powered by renewable energy, and contribute to Indonesia’s goal of becoming a key player in the global EV market.

Investment Minister Bahlil Lahadalia disclosed the British consortium’s investment plan without providing a detailed breakdown of the allocation. The consortium’s investment will focus on establishing an industrial park that leverages wind energy as its power source, with a targeted completion date of September. The consortium comprises Glencore, Indonesia’s state miner Aneka Tambang, materials company Umicore, and energy company Envision Group. While Envision and Aneka Tambang have yet to respond for confirmation, Glencore refrained from commenting on the rumors, and Umicore chose not to disclose any details.

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Minister Bahlil Lahadalia expressed that the consortium’s investment amounts to approximately $9 billion, subject to the agreed-upon plans. The government aims to expedite the investment process, underscoring its commitment to facilitating the consortium’s contribution to Indonesia’s economic growth.

Toto Nugroho, CEO of Indonesia Battery Corporation, a state battery company, highlighted the anticipated benefits of the investment, particularly in opening doors to the British and European markets. This move aligns with Indonesia’s strategy of capitalizing on its nickel resources and attracting global EV manufacturers like Tesla and China’s BYD Group.

To secure nickel reserves for domestic investors and entice international EV manufacturers, Indonesia implemented a ban on unprocessed nickel ore exports in 2020. This measure aims to ensure a stable supply chain while encouraging investments in downstream industries. With the British consortium’s investment, Indonesia seeks to solidify its position in the global EV market and position itself as a significant player in the production of EV batteries.