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EV battery holding firm eyes foreign mines, imports to cement supply
State-owned Indonesia Battery Corporation (IBC) is considering acquisitions of mines abroad to buttress its supply chains as global uncertainty spotlights the importance of access to raw materials.
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Hyundai's IONIQ 5 electric SUV is seen during a test drive at the Hyundai electric car assembly plant in Cikarang, West Java, on May 19. (JP/Divya Karyza)
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ndonesia Battery Corporation (IBC) is considering acquisitions of overseas mines to buttress its supply chain as global uncertainty spotlights the importance of access to raw materials.
In a hearing with House of Representatives Commission VII, which oversees technology and energy policy, an executive of state-owned mining holding company MIND ID, one of four IBC shareholders, explained that 20 percent of the raw materials needed for battery production had to be imported.
“The [options] for corporate action to purchase foreign lithium mines or other means [to secure supply] are still being discussed under the promulgation of a road map,” MIND ID institutional relations director Dany Amrul Ichdan told hearing participants.
Lithium hydroxide accounts for the largest portion of imports for the domestic battery industry with an estimated 70,000 tons shipped into the country per year, mostly from China, Chile and Australia.
Next on the list is graphite, with some 44,000 tons per year supplied by China, Brazil and Mozambique, followed by manganese sulfate and cobalt sulfate with 12,000 tons per year each.
According to the MIND ID document presented to lawmakers, most cobalt supplies come from Congo and Russia, while manganese is predominantly sourced in South Africa, Gabon and Australia.
MIND ID noted that its nickel ore supply, which makes up 80 percent of total battery production materials, was already secured by the inventories of state-owned diversified mining company PT Aneka Tambang (Antam).
