The factory has a capacity of producing 80,000 tons of anode material every year, which is likely to produce 1.5 million electric vehicles.
China has reportedly invested to set-up a new anode material plant in Indonesia for the lithium-ion battery. BTR New Material Group with an investment of $478 million has set-up the factory in Kendal Industrial Park in central Java. Indonesia, which is eyeing to become a global hub of electric vehicles has probably received the biggest investment in this sector until now.
Indonesia’s presidential secretariat has told the media that completion of the factory was done in 2023, but the operation began on Wednesday. Currently, it is having a capacity of producing 80,000 tons of anode material every year, which is likely to produce 1.5 million electric vehicles. President Joko Widodo said that the project is very crucial for the country to achieve its goal for the complete structuring of the supply chain for electric vehicles.
In an effort to magnetize global investors, the country is utilizing its huge production of nickel, which is highly significant for numerous batteries. “What we have dreamed of — a big EV ecosystem that is strong and integrated — is starting to materialize. If all of the ecosystem is built, we will enter the global supply chain which can give us value-add in employment and the economy,” added Widodo.
The company will commence the development phase towards the end of this year. He Xueqin, chairman of BTR New Material the factory will be expanded to produce 18,000 tons. BTR will help Indonesia to become the globe’s second largest producer of anode. Anodes are placed opposite to cathode, which are produced out of graphite. The new factory will source artificial graphite from the state oil firm, dubbed PT Pertamina and Africa will provide natural graphite.
China has been investing billions on EV ecosystems in various countries to hold the lion’s share. A couple of months back, BTR has also proclaimed to invest in Morocco to set-up to produce cathode at a large-scale. With an investment of $300 million, the factory will have a production capacity of 50,000 tonnes of cathode. 25,000 tonnes is expected to be produced by September 2026.
