The minister made this statement at the inauguration of Lithium Iron Phosphate (LFP) battery production by PT LBM Energi Baru Indonesia in the Kendal Industrial Area (KIK), Central Java.
"As conveyed by President Widodo, Indonesia should no longer export raw materials," Pandjaitan remarked during the inauguration on Tuesday.
The minister highlighted that the LFP factory is a strategic investment partnership project between the Indonesia Investment Authority (INA) consortium and Changzhou Liyuan New Energy Technology Co, Ltd. (Changzhou Liyuan), one of the world's LFP producers and suppliers.
Pandjaitan is upbeat that the cooperation will help meet the global demand for LFP batteries driven by the increasing use of electric vehicles (EVs) worldwide.
"We must generate added value in our own country by building a strong downstream industry and putting ourselves as a key player in the global supply chain," the minister emphasized.
He explained that LFP is one of the two main chemicals in lithium-ion batteries, apart from Nickel Cobalt Manganese (NCM), and is known for its cost-effectiveness, thereby making it suitable for EVs and energy storage systems.
"This factory is also the foundation of Indonesia's integrated EV ecosystem. Through the refinement of the lithium battery production chain, Indonesia will be able to meet the need for lithium batteries for three million electric vehicles worldwide," he explained.
Meanwhile, Chairman of INA's Board of Directors Ridha Wirakusumah affirmed that the rapid growth in demand for LFP driven by the global shift towards EVs and renewable energy brings a great opportunity for Indonesia.
Wirakusumah noted that by building strong production capabilities, Indonesia will be ready to meet the increasing demand for LFP cathode materials in the future.
He said the factory operates with an initial production capacity of 30 kilotons and is expected to increase to 120 kilotons per year, targeting the United States and Europe as export destinations.
He further noted that the factory also brings a positive impact on the local community by opening more than two thousand jobs, with 92 percent filled by local workers.
Meanwhile, the CEO of Changzhou Liyuan, Shi Junfeng, stated that PT LBM Energi Baru Indonesia is the first cathode producer outside China whose initial operation is impactful in increasing the security of supply from the global new energy supply chain.
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Translator: Zuhdiar Laeis, Resinta Sulistiyandari
Editor: Rahmad Nasution
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