To increase the economic value of their nation, Indonesian officials have emphasized the need of growing downstream sectors, namely in the production of electric vehicle (EV) batteries. President Joko Widodo has directed that resources be directed toward downstream industrial development, according to Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, who spoke at the opening of PT BLM Energi Baru Indonesia’s Lithium Iron Phosphate (LFP) battery manufacturing plant in the Kendal Industrial Park, Central Java.
The initiative’s main policy is to stop exporting raw materials in order to increase economic value domestically.
The ministry claims that Changzhou Liyuan New Energy Technology Co., Ltd., a major producer of LFP batteries worldwide, and Indonesia’s Investment Authority (INA) have partnered strategically to invest in the LFP battery factory. With the use of electric vehicles becoming more and more commonplace across the globe, there is an increasing demand for LFP batteries, which this alliance seeks to supply.
Luhut went on to say that a key component of Indonesia’s integrated EV ecosystem is the LFP facility. Indonesia will be able to supply the lithium battery needed for up to three million electric vehicles worldwide if the production chain for lithium batteries is completed.
The fast rising demand for LFP batteries as a result of the world’s shift to EVs and renewable energy sources was also mentioned by INA Chairman Ridha Wirakusumah, who noted that this presented a huge potential for Indonesia. The nation will be well-positioned to meet the growing demand for LFP cathode materials in the future by developing a robust production capability./.
