Revealed, 2 Chinese Investors Invest Rp5 Trillion For Electric Vehicle Battery Factory In Morowali, Central Sulawesi

Illustration. (Photo: Doc. Antara)

JAKARTA - China's Chengxin Lithium said it would take a 65 percent stake in a lithium project worth US$350 million or around Rp5 trillion in Indonesia to build production capacity overseas.

Quoted from Antara, Monday, September 27, the factory that will make lithium chemicals used in electric vehicle (EV) batteries will be located in the Indonesia Morowali Industrial Park (IMIP) in Sulawesi. The industrial estate is already home to several Chinese investment projects, including several designed to produce two other battery metals, nickel, and cobalt.

Chengxin said in its report submission to the Shenzhen Stock Exchange that Singapore-founded Stellar Investment Pte will hold the remaining 35 percent stake in the joint venture, known as PT ChengTok Lithium Indonesia.

The company will produce 50,000 tonnes per year of lithium hydroxide and 10,000 tonnes per year of lithium carbonate, said the letter filed with the exchange, without specifying the source of the raw materials.

Indonesia is the world's largest nickel miner but has banned nickel ore exports since early 2020 as it seeks to process more of its resources domestically and establish a complete EV battery supply chain in the country.

Last week, South Korea's LG Energy Solution and Hyundai Motor Group began construction of a $1.1 billion plant to make EV batteries in Indonesia's West Java province.

"This investment will greatly expand the production capacity of the company's lithium salt business," said Shenzhen-based Chengxin.

Once the project is put into operation, it will significantly increase the company's revenue and profitability," he added, without providing an estimated start date.

In a separate report on Thursday, September 22, Chengxin marked another overseas move by saying its Hong Kong subsidiary had agreed to buy Argentine miner Salta Exploraciones SA for $37.7 million.