The State-Owned Holding Company, Mining Industry Indonesia (MIND ID) has affirmed its readiness to become a primary global supplier of battery materials. MIND ID’s CEO, Hendi Prio Santoso, explained that with its main reserves of battery raw materials under its management, the company is confident in realizing its ambition to be a global electric vehicle (EV) battery producer.
“We are prepared to contribute to the global demand for EV battery materials through our processed products derived from existing commodities and potential commodities in the future,” Hendi stated at the ASEAN Minister Energy Meeting in Bali on Friday, August 25, 2023.
Hendi elaborated that through its subsidiary, the Indonesia Battery Corporation (IBC), MIND ID will produce batteries with a total capacity of 45 GWh. Meanwhile, the global demand for electric vehicle batteries is projected to reach 5,000 GWh by 2030.
“With the mineral reserves we currently possess and the downstream roadmap we are pursuing, Indonesia is projected to supply 50 percent of the global demand for electric vehicle batteries,” Hendi said.
To meet this demand while maintaining responsible mining practices, MIND ID focuses on downstream activities and responsible mining governance. He acknowledged that many crucial raw materials, which are future flagship commodities for MIND ID, must be sourced from secondary reserves.
“Hence, MIND ID aims to implement total extraction to recover these minerals from downstream by-products as part of our circular economy initiative,” Hendi noted.
Hendi projected that demand for certain mineral commodities will experience growth amid the energy transition projects. He acknowledged that clean energy projects undertaken by countries do not eliminate the need for mining mineral commodities; instead, they become essential to support the clean energy ecosystem.
“The net-zero emissions target will increase system production and environmentally friendly energy supply infrastructure, as well as the mining of crucial minerals that support technology,” Hendi explained. As a mining holding company managing significant mineral reserves in Indonesia, MIND ID plays a pivotal role. Commodities like nickel, copper, tin, and aluminum are vital raw materials for the energy transition projects.
He exemplified that Indonesia possesses silicon for light energy power generation, tin and copper for electrical circuits and systems, platinum group metals for hydrogen, rare earth elements for magnets, and high-performance energy systems. Additionally, battery raw materials also require these essential mineral commodities.
“The MIND ID Group currently manages several critical minerals and materials that will be processed into intermediate products domestically (gold, nickel, bauxite, aluminum, copper, tin, and coal),” Hendi stated.
To address this demand, Hendi noted that the mining holding company is enhancing exploration efforts and expediting downstream projects to optimize the processing of these mineral reserves by Indonesia.
“MIND ID is currently conducting aggressive exploration campaigns to address the reserve replacement ratio. Importantly, we’re also developing the downstream mineral value chain to benefit the country,” Hendi remarked.
The ongoing global energy transition projects require mineral reserves as primary raw materials. The International Energy Agency (IEA) noted an increase in demand for mineral reserves after the majority of countries began their energy transition projects.
Tae Yoon Kim, Senior Energy Analyst at the IEA, explained that demand for several mineral commodities significantly grew in 2022. For instance, cobalt demand increased by 40 percent from 2021 to 2022. Nickel demand rose by 16 percent, copper by 22 percent, and lithium surged by 56 percent in 2022.
“Since all countries have agreed to the Paris Agreement and promoted energy transition projects, the demand for mineral commodities has actually increased. Nickel, cobalt, lithium, and copper are essential raw materials for solar panels, batteries, and clean energy generation,” Yoon Kim stated.
Yoon Kim observed that sustainable mining governance plays a crucial role in supporting the clean energy supply chain. Current technological innovations also require effective management of these mineral reserves without further harming the Earth.
On one hand, Yoon Kim acknowledged that the energy transition also drives growth in the mining sector. In fact, Yoon Kim noted that the mineral mining sector can act as an economic catalyst.
“This is why we need more attention on vital minerals and increased supply there to ensure balanced supply chain development. This is a crucial pillar in the clean energy ecosystem,” Yoon Kim explained.
Image source >>> Muhammad Nursyamsi