Indonesia opens major anode material plant for EV batteries

On August 7, Indonesian President Joko Widodo inaugurated a new anode material plant in Kendal, Central Java, marking a significant step in the country’s efforts to develop a domestic electric vehicle (EV) industry.

The plant, built through a collaboration between China’s BTR New Material Group and Singapore’s Stellar Investment, represents a $478 million investment in its first phase, Caliber.Az reports, citing foreign media.

The plant will produce 80,000 metric tons of anode materials annually, although the start date for production has not yet been announced. This facility is a key component in Indonesia's strategy to leverage its abundant mineral resources, particularly nickel, which is vital for battery cathodes.

President Widodo, commonly known as Jokowi, highlighted the strategic importance of the project, noting, "Our decision several years back to develop a big EV ecosystem is starting to materialize in Indonesia, starting when we banned export of raw nickel in 2020."

For this new plant, BTR will use graphite sourced from its existing facility in Morowali, Indonesia. The company plans to begin construction on the second phase of the plant in the fourth quarter of this year, with an additional $299 million investment aimed at doubling production capacity to 160,000 tons per year.

He Xueqin, Chairman of BTR New Material Group, stated that the project will position Indonesia as a major global player in anode material production, ranking second only to China. "The local project will also fill the gap in Indonesia and the entire ASEAN battery industry," he added.

Indonesia's push to build a robust EV sector has attracted significant investment from major global battery and EV manufacturers. South Korea’s Hyundai Motor Group and LG Energy Solution recently launched the country’s first battery cell production facility, which will produce batteries for Hyundai’s EVs with Indonesian-made components.