Indonesia aims to become world’s second largest anode material producer

Indonesia on Wednesday inaugurated its first lithium-ion battery anode factory in the Kendal Industrial Park in Central Java province.

Speaking at the event, president Joko Widodo emphasized that Indonesia has emerged in the group of fast-growing countries in this field. The first phase of the plant development process was completed within just 10 months after the signing of the cooperation agreement in Beijing last October.

The project’s first phase, which involved a $478 million investment, boasts an annual production capacity of 80,000 tons of anode materials. The second phase, scheduled to start in late 2024 with an additional $299 million investment, will expand the total capacity to 160,000 tons.

Luhut Binsar Pandjaitan, Coordinating Minister for Maritime Affairs and Investment, noted that the project’s first phase will enable the production of 1.5 million electric cars. With an additional 80,000 tons from the second phase, this capacity will increase to 3 million per year.

After second phase of the project is completed, Indonesia is expected become the second largest anode material producer in the world. This development will contribute to building a complete lithium battery ecosystem in Indonesia.

In order to realise domestic production activities, use components, attract labor and transfer technology, Indonesian government is striving to attract a lot of investment capital in related fields. The construction of the factory will strongly promote Indonesia's electric vehicle ecosystem.

The first export in August includes 30.8 tons, equivalent to one container of finished products, meeting Samsung's order needs. The factory's products have also been ordered by LG Panasonic, Tesla, and other major international customers.