An official (R) charges an electric car after the launch of the first public electric vehicle charging station in the town of Nusa Dua on Indonesia's resort island of Bali on March 25, 2022. | CFP Photo
Chinese battery materials maker CNGR Advanced Material Co., Ltd (CNGR) is set to build an integrated production facility valued at $10 billion in Indonesia.
Magdalena Veronika, a director of CNGR Indonesia, stated on Wednesday that the investment would be completed within 10 to 15 years and the company is looking for a suitable location for the factory.
She detailed that the project has been granted national strategic project (PSN) status by the Indonesian government, which will provide certain preferential policies, including land procurement. She added that the project requires 3,000 to 5,000 hectares of land. "The investment can reach $10.5 billion and will be divided into three phases."
CNGR, according to Magdalena, has already produced Class-1 nickel products in Indonesia and plans to produce battery precursor products at the new factory. The firm is also willing to allow partners to build a processing plant at the new factory.
"Our clients say they would love to join us once the complex is built," she noted, adding that CNGR focuses on battery material investments, while other companies may invest in batteries or other products.
Given the announcement of a ban on nickel ore exports in 2020, Indonesia hopes to utilize its rich nickel resources and a series of incentive programs to attract more electric vehicles and battery manufacturers to invest in the country.
More and more Chinese automakers have begun to set up factories in Indonesia in recent years. A group of electric vehicle manufacturers, such as BYD, have chosen to settle in Indonesia. Chinese automaker Wuling announced last month that it would produce electric vehicle batteries at its Indonesian factory by the end of this year.
Reporter | Clonde Zhang
Editor | Steven Yuen, Nina Huang, James
