Foreign media reported that LG Chem previously said that the company plans to invest in a lithium battery plant in Indonesia as a precautionary measure to deal with Indonesia's ban on nickel ore export since January 2020.
On Monday, Indonesian Maritime Coordination Minister Pan Jietan pointed out in a written statement that LG Chemical's investment plan will support the development of electric vehicles in Indonesia due to the nickel content of electric vehicle batteries being less than 1.4%. At present, nickel ore with a nickel content of less than 1.4% in Indonesia is still exported abroad.
According to public information, Indonesia has abundant nickel resources. In 2000, it has proven nickel ore reserves of 1 billion tons, of which nickel content is 13 million tons, ranking fifth in the world. In the mid-1970s, Indonesia signed a work contract with the Canadian mining company to start mining two large nickel mines in Sulawesi, which has since become an important producer of nickel. In 2004, the output of nickel ore was about 4 million tons, and the export was about 3.25 million tons.
“Before, LG Chem said that after understanding that Indonesia has implemented a plan to ban the export of nickel ore since January 2020, LG decided to establish a lithium battery plant in Indonesia based on the rising trend of nickel prices in the global market.” Pan Jietan Recently said.
In addition, the high-tech lithium battery has learned that nickel has risen sharply with the news that Indonesia has recently banned the export of nickel ore in the market.
The industry believes that with Indonesia's nickel export ban, nickel prices may far exceed expectations in the fourth quarter, but there is a big factor that will weaken the strong momentum of nickel prices: the Philippines may increase exports as Indonesia stops selling. Even so, it is still believed that there is still a significant upside risk to nickel prices in the fourth quarter.
Looking back at LG, in order to stabilize the leading position of global power battery shipments, LG Chem has started large-scale layout in the world in the past two years.
In the first half of the year, LG Chem plans to expand its production news frequently, considering investing 2 trillion won (about 17.7 billion yuan), building a second battery factory in the United States and stepping up the expansion of the Nanjing plant. It is reported that the Nanjing plant is scheduled to achieve mass production in October this year. The project plans a total investment of 2 billion US dollars, is expected to achieve full production in 2023, with an annual production capacity of 32GWh.
Last November, LG Chem also announced plans to invest another 577 million US dollars (about 3.9 billion yuan) to expand the Polish factory, which will increase the annual battery production of the plant to 70 GWh. It is expected to supply battery parts for 300,000 electric vehicles per year. .
Matching the expansion rhythm, LG Chem has developed an ambitious revenue plan based on the continued growth in demand for lithium batteries in the future – achieving $26.7 billion (approximately RMB 188.34 billion) in lithium battery revenue in 2024. . According to the estimated battery price of 75 US dollars per kWh (about 516.4 yuan), lithium battery sales will reach 356GWh.