South Korean company LG Energy Solution (LGES) has broken ground on nickel processing plant in Indonesia.

This move is a part of the firm’s $9.8bn investment in Indonesia to manufacture electric vehicle batteries.

The company plans to construct a smelter with the capacity to annually generate 150,000t of nickel sulphate.

This smelter will be built with an investment of $3.5bn.

LGES will also construct a $2.4bn factory in the Batang park to annually generate 220,000t of precursor and 42,000t of cathode.

This plant will provide raw materials required for its planned 200GWh battery cell facility located in Karawang town of West Java.

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By GlobalData

This battery cell facility will be built with an investment of $3.6bn.

In September this year, the company will sign an agreement with Indonesian state mining firm Aneka Tambang (Antam) to together invest in a $300m nickel mine located in Halmahera island.

This mine will be able to generate 16 million tonnes of nickel ore.

At the ground breaking ceremony, Indonesian President Joko Widodo said that Indonesia aims to become a major producer of nickel-based products given that it has the biggest nickel reserves in the world.

To draw foreign investment to boost downstream industry, Indonesia had stopped exporting nickel ore in 2020.

The country’s president intends to repeat this strategy toward other natural resources such as bauxite and tin.

Last September, LGES and Hyundai Motor Group began the construction of a $1.1bn EV battery plant in Bekasi, West Java.
Image: LGES has an investment plan of $9.8bn to manufacture electric vehicle batteries in Indonesia.