On Wednesday, Indonesia's President Joko Widodo, commonly known as Jokowi, inaugurated a new plant constructed by China's BTR New Material Group in collaboration with Singapore's Stellar Investment. This facility, located in Kendal, Central Java, is set to produce anode materials essential for electric vehicle (EV) batteries. 

In the project's initial phase, an investment of US$478 million has been made, aiming to produce 80,000 metric tons of materials annually. The Coordinating Ministry of Maritime and Investment Affairs highlighted the strategic importance of this development, although the production start date remains unannounced. 

"Our decision several years back to develop a big EV ecosystem is starting to materialize in Indonesia, starting when we banned the export of raw nickel in 2020," President Jokowi stated during the plant's formal opening. 

The BTR facility will process graphite products from its plant in Morowali, Central Sulawesi, to manufacture anode materials. This initiative follows the cooperation agreement between the Indonesian government and BTR, formalized at the third Belt and Road Forum for International Cooperation Summit in Beijing on October 16, 2023. 

He Xueqin, Chairman of BTR New Material Group, announced an additional $299 million investment for the second phase of the plant, expected to commence construction in the fourth quarter of this year. This phase will double the plant's capacity to 160,000 tons annually, positioning Indonesia as a major global producer of anode materials.  

"Indonesia will become the second-largest negative material producer in the world, second only to China," He Xueqin noted.  

The inauguration of this plant is part of Indonesia's broader strategy to attract major battery and EV manufacturers to invest in domestic production. South Korea's Hyundai Motor Group and LG Energy Solution recently launched the country's first battery cell production facility, integrated with Hyundai's plant, where they will produce EVs utilizing Indonesian-made batteries. 

The collaboration between Indonesia and BTR thus marks another significant step toward establishing a robust EV ecosystem in the region.