LG Energy Solution built an Electronic Vehicle (EV) battery factory in the Batang Integrated Industrial Estate (KIT), Central Java. The investment value is estimated at US$ 9.8 billion or Rp142 trillion. This investment is a form of cooperation between the LG consortium and the IBC BUMN consortium, which consists of LG Energy Solution, LG Chem, Huayou, LX International, Posco, Mind ID, Antam, Pertamina Power, and PLN. President Joko Widodo (Jokowi) said that this investment was the first upstream to downstream investment in the world.
“LG’s investment is the first investment in the world that integrates the production of electric vehicles from upstream to downstream,” said Jokowi at KIT Batang, Wednesday (8/6/2022).
Nickel as the main raw material for electric batteries is mined in Halmahera, Maluku. Meanwhile, the industrial location, purification, and cathode production are at KIT Batang. This is what he calls downstream, which is spread over the territory of Indonesia. President Joko Widodo appreciated LG’s investment in Indonesia. This is because it creates jobs for up to 20,000 people. This large-scale project can support the production of 3.5 million units of electric vehicle batteries with a potential of up to 200 GWh/year. He added that a battery factory is being built in Karawang and an electric car factory in Cikarang, West Java.
Minister of Investment/Investment Coordinating Agency (BKPM) Bahlil Lahadalia said the economic impact of this investment reached US$ 5.6 billion or Rp80.6 trillion (exchange rate of Rp14,400) annually. President of LG Energy Solutions Lee Bang Soo called this investment an important key to national development. He hopes this EV factory will become one of the most important in Southeast Asia in the future. LG is collaborating with the State Electricity Company (PLN) on the project. This project will contribute to the global secondary battery industry in the next 26 years.
June 08, 2022, DetikFinance
(https://finance.detik.com/industri/d-6116340/lg-investasi-kendaraan-listrik-hulu-ke-hilir-jokowi-pertama-di-dunia)
(https://finance.detik.com/industri/d-6122732/lg-dan-bumn-punya-proyek-raksasa-rp-142-triliun-ini-rinciannya)