Smelter Becomes Key to Electric Vehicles Battery Ecosystem

15 January 2023

The Freeport Gresik smelter in East Java is considered to be an important part in the ecosystem of electric vehicles (EV) in the country. Because, according to him, electric vehicles comprise nickel, cobalt, aluminium, copper, graphite and iron.

This was explained personally by the PT Freeport Indonesia (PTFI) President Director, Tony Wenas. He explained that the processing capacity of the smelter located in Gresik is 1.7 million dry metric tons (DMT) per year.

He targets the construction and the physical building, as well as vital equipment in Gresik can be accomplished by the end of 2023. Furthermore, said Tony, this will be followed by pre-commissioning and commissioning, in order that the refining facility is operational by May of 2024.

“Naturally, it becomes an important part of electric vehicles in Indonesia, and will become an important part in terms of renewable energy, which is being widely developed in a number of countries, because 65 percent of the world’s copper is consumed/used to conduct electricity,” he explained as quoted from ANTARA News Agency. “With profitability and prices on an upward curve again, assuming the price of copper to be US$4 and gold to be US$1.800, we will achieve US$4 billion (or, Rp.60.59 trillion assuming an exchange rate of Rp.15.148 per US$),” he added.

Freeport itself has presently already started construction, recruitment and training. This step has already absorbed US$1.63 billion for expenses, or equivalent to Rp.25 trillion.

For additional information, the Freeport smelter will be built with a single line, or one-line design. Tony hopes that a total of 600.000 tons of copper metal will be consumed by the in-country downstream industry. “More downstream industries are growing better to support the EV ecosystem, as well as other in-country requirements. This will incite the downstream industry to grow when it is complemented by the right policy and promotion,” he concluded.

 

https://otomotif.tempo.co/read/1679651/smelter-freeport-jadi-kunci-ekosistem-baterai-kendaraan-listrik

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