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Jokowi Inaugurates BTR's Electric Battery Anode Factory in Kendal SEZ
WINDONESIA August 27, 2024
President Jokowi inaugurating BTR's factory in Kendal SEZ. (industry.co.id)
President Joko "Jokowi" Widodo inaugurated the opening of Indonesia BTR New Energy Material's anode electric battery component factory at the Kendal Special Economic Zone (SEZ) in Kendal Regency, Central Java Province on Aug. 8, 2024.
The inauguration was also attended by Coordinating Economic Minister Airlangga Hartato, Coordinating Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan, then-Investment Minister/Investment Coordinating Board (BKPM) Head Bahlil Lahadalia, a representative of the Chinese Ambassador to Indonesia, and several local government officials.
BTR is a China-based company that was founded in 2000 and has become one of the largest electric battery anode manufacturer in the world.
BTR decided to expand to Indonesia in 2023, with an investment value of US$478 million in the first phase of its expansion and US$299 million in the next phase. The BTR factory's establishment in Kendal SEZ is projected to employ 7,800 workers, which includes 6,000 local workers during its construction and 1,800 local workers during its first and second operational phases.
After officially operating, Indonesia BTR New Energy Material is expected to produce 80,000 tons of electric battery anode material, while continuing to expand construction at the same location. Phase two of the plant's construction, which would add 80,000 tons of annual production capacity, will begin soon and is targeted for completion by the first quarter (Q1) of 2025.
With a total production of 160,000 tons per year when its construction is complete, the BTR factory in Kendal SEZ would turn Indonesia into the second-largest producer of lithium-ion battery anode materials in the world after China.
President Jokowi said at the inauguration ceremony thaat Indonesia is currently focusing on downstreaming not just the nickel industries, but also copper, tin, and others. The result of said downstreaming includes electric vehicle (EV) component production.
"Because Indonesia wants to build an EV ecosystem, building an integrated EV ecosystem is a must to make us an important part of the world's supply chain," Jokowi said in an written statement on Thursday, Aug. 8, 2024.
The components manufactured by the BTR factory in Kendal SEZ is set to be supplied to several leading companies, such as BYD, SK Group, LG, and Samsung.
"In addition to supporting the government's downstream program, we hope that this project could also increase the country's foreign exchange [reserves]. We also hope that this BTR project could support Indonesia's integration into the lithium battery materials global supply chain and become a global player in the battery and EV ecosystem," BTR New Material Group Chairman He Xueqin stated regarding BTR's goal for investing in Indonesia.
To meet the demand for green products in the future, BTR will power itself with natural gas. The firm is committed to carrying out an energy transition and plans to enter into a green electricity purchase agreement with PLN by its Kendal SEZ factory's second phase of construction.
"Currently, the automotive and renewable energy industries are starting to become a new trend in KEK Kendal. Of course, we hope that with the operation of BTR, this will attract other renewable energy and automotive industries to enter and create an integrated industrial ecosystem in the Area. In addition, with the increasing growth of industry in the area, it is hoped that it can expand the absorption of labor, increase regional and national economic growth," Setyono Djuandi Darmono, founder and president director of Jababeka which is part of the Kawasan Industri Kendal joint venture that runs the Kendal SEZ, explained on the multiplier effect created by the existence of BTR in KEK Kendal.
Source: www.industry.co.id
