The total investment for this integrated battery factory reaches Rp. 142 trillion. LG revealed that this battery factory complex will be carried as a production base for car batteries on a regional and global scale.
Indonesian President Joko Widodo (Jokowi) inaugurated the construction of the battery industry belonging to LG Energy Solution. The inauguration ceremony was held at the Batang Integrated Industrial Estate (KITB), Batang Regency, Central Java, Wednesday (08/06/2022).
Jokowi said this investment is the first investment in the world that integrates the production of electric vehicles from upstream to downstream.
“Starting with nickel mining, smelters, precursor factories, cathode factories, then electric batteries, battery packs, to electric cars, we are still adding the battery recycling industry. From upstream to downstream, end to end, everything is done in this investment," he said in an official statement on Wednesday (8/7/2022)
Jokowi also expressed his gratitude for the cooperation carried out by all parties so that the construction of the integrated electric battery industry can begin immediately. The President said the industry has a very large investment value and employment.
"This total investment is also not a small amount of Rp. 142 trillion. If dollar 9.8 billion US dollars. And what I am most happy about, absorbing employees, human resources, our workforce is 20 thousand people, this is not a small number. Everywhere in today's world job creation is key,” he explained.
On this occasion, the former Governor of Solo admitted that he was happy because the investment from upstream to downstream was carried out in several regions in Indonesia, not only in Java but also outside Java.
“The mining, smelting smelter for nickel is located in Halmahera, in North Maluku. Then for the refining refinery industry and precursor industry, the cathode industry is in Central Java, in the Industrial Estate in Batang. Then the battery factory which is also being built in Karawang, and the electric car factory in Cikarang, spread out, this is very good, "he said.
In addition, as a country with the largest nickel reserves in the world, the President hopes that Indonesia can become the first producer of nickel-based products.
Furthermore, the President asked all levels of the central and regional governments to continue to provide full support for the realization of the industrial project. Besides being able to create large job opportunities, the President said that the investment could provide additional state income and boost the economy.
“The state will get additional income from this investment. We will get everything in the form of corporate income tax, employee income tax, VAT, then PNBP. And also strengthen our trade balance, although now we have a surplus for more than 20 months and we hope to be able to create new points of economic growth," said the President.
The Minister of Investment/Head of BKPM Bahlil Lahadalia said that the downstream investment made by LG will provide an added value of US$5.18 billion for the Indonesian economy, by absorbing more than 20,000 workers.
"The economic impact is US$5.18 billion every year from a total investment of US$9.8 billion with a total employment of approximately 20,000 jobs, specifically for car battery factories not for this area [Batang Integrated Industrial Zone]," said Bahlil
LG Energy Solution's electric car battery factory investment has entered the second phase, with an investment value of US$9.8 billion. The total industrial area of the factory that will be used is approximately 275 hectares or 30 percent of the total area of the Batang KIT.
The entire project will be in collaboration with Antam and IBC in Indonesia. The project received incentives from the government and the implementation of the latest technology from the LG Consortium.
At the same time, President of LG Energy Solutions Lee Bang Soo said that the core plant of the Grand Package project at KIT Batang will be an important key point for balanced national development. In fact, he promised to make KIT Batang the mecca of the largest electric vehicle battery industry in the world.
"The LG consortium will do its best to maintain the Batang Industrial Estate as the mecca of the world's best electric vehicle battery industry," he promised.
Unfortunately, until now there is no clarity when this battery factory will operate. On the other hand, the development of electric car batteries is fast, there is a trend to leave the cobalt content.
EmoticonEmoticon