When a South Korean firm pulled the plug on a multibillion-dollar investment last year, it was a major blow to Indonesia’s plans to build an integrated battery-manufacturing ecosystem – until a group of Chinese companies stepped into the breach.
Project Titan aims to tap Indonesia’s vast nickel reserves in East Halmahera – the epicentre for mining the sought-after metal – before shipping refined and processed material to make batteries for electric vehicles (EVs) more than 2,000 kilometres away in a factory in West Java.
Even before South Korean battery firm LG Energy Solution scrapped its planned $8.45 billion investment in Project Titan, citing “various factors” including market conditions, years of stalled feasibility studies had cast doubt on the initiative – a pillar of Indonesia’s goal to use its nickel riches to become a global battery manufacturing hub and a base for EV production in the region.
The $6-billion investment and cooperation framework struck earlier this year between state companies and a Chinese consortium keeps Project Titan alive, but it also highlights Indonesia’s heavy dependence on China for capital, technology and materials in battery manufacturing.
“We get ca
Read More
