Indonesian Political, Business & Finance News

EV Battery Ecosystem Project Could Cut Fuel Imports by 300,000 Kilolitres Annually

| Source: GALERT
KARAWANG - The Minister of Energy and Mineral Resources has stated that the electric vehicle battery ecosystem development project being undertaken by PT Aneka Tambang Tbk (ANTM), CATL, and Indonesia Battery Corporation (IBC) has the potential to reduce fuel oil imports by up to 300,000 kilolitres per year.

This was conveyed by Investment Minister and BKPM Head Bahlil Lahadalia when reporting on the project's progress to President Prabowo Subianto at the Artha Industrial Hills complex in Karawang, West Java, on Sunday, 29 July.

"This could save around 300,000 kilolitres of fuel imports per year with a capacity of 15 GWh. Our future target could reach 40 GWh, in line with the growing battery market, including for solar power plants," said Bahlil.

The battery cell factory in Karawang is targeted to have an initial capacity of 6.9 GWh in its first phase, which is expected to commence operations by the end of 2026. The project will subsequently be expanded to reach a total capacity of 15 GWh in the second phase.

Battery production from the factory will be used to support electric vehicles and battery energy storage systems, serving both domestic and global markets.

The project, previously known as Project Dragon, carries an investment value of US$1.2 billion for Karawang, whilst the North Maluku component amounts to US$4.7 billion.

"Mining, smelting, precursor, cathode, and RKF operations are all in North Maluku. Karawang is solely for battery cells, so as to be close to automotive factories," Bahlil explained.

Beyond fossil energy import efficiency, the project also embraces sustainability principles in its energy supply. The combination of power generation facilities includes a 2 x 150 MW coal-fired plant, an 80 MW gas turbine plant, a 30 MW waste heat power plant, and 172 MWp of solar capacity for the North Maluku area. In Karawang, the battery factory will utilise 24 MWp of solar power.

"So we are truly pushing for this to be environmentally friendly," Bahlil affirmed.
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