MIND ID, through IBC, enters into collaboration with Citaglobal to accelerate battery-based Electric Vehicle Ecosystem

One of the commitments of the Indonesian Government is to make available and use low emission energy, encouraging each industry to make this a reality and offer their contribution.  MIND ID, and its affiliation, PT Industri Baterai Indonesia (IBC) continue to accelerate this effort, one of which is through the signing of the Memorandum of Understanding (MoU) with Citaglobal Berhad (previously known as WZ Satu Bhd) (Citaglobal) which is a Malaysian company.

The scope of the MoU covers the development of battery cell production and Battery Energy Storage System (BESS) plant. The collaboration is expected to complement both companies and provide added value for the preparation of the battery industry in Indonesia.

Indonesian President Joko Widodo, in a meeting with the Mayasian Prime Minister on Monday (09/1/2023), at the Bogor Presidential Palace, said that: “Malaysia is not only our close neighbor, but we are also people of the same ethnic background and have a very strong relations.” It is the good relations between the two countries that have also produced the MoU between IBC and Citaglobal.

IBC is a subsidary of State-Owned Enterprises, established by four Indonesia SOEs; ANTAM, MIND ID, PERTAMINA and PLN. The company is headquartered in Jakarta, with the vision of maximizing Indonesia’s natural resources through the development of electric vehicle batteries and battery industry ecosystem in Indonesia.

The MoU was signed on Sunday (08/12/2022) in Jakarta between the Executive Chairman & President of Citaglobal, Tan Sri Dato' Sri (Dr.) Mohamad Norza Zakaria and President Director of IBC, Toto Nugroho. The event was witnessed by Malaysian Prime Minister YAB Dato' Seri Anwar Ibrahim, who was on his first official visit to Indonesia since appointed Prime Minister.

In principle, the MoU contains three key points of collaboration, namely: One, the development, design and construction of an integrated turnkey manufacturing facility for battery cells, module and packing. Two, the development of a BESS integrated solution. Three, the transfer of technology and knowledge related to the develolpment of the battery plant and BESS.

MIND ID supports the implementation of the MoU, as it is very advantageous for both companies, with the strategic plan and focus to accelerate the growth of the battery-based electric vehicle ecosystem, to realize the low emission renewable energy sector.

Danny Amrul Ichdan, President Commissioner of IBC and also MIND ID’s Director of Institutional Relations, welcomes this collaboration. “I am proud that IBC is able to enter into collaboration with a reputable foreign company, which means that the battery products manufactured domestically, will be internationally recognized, while at the same time, able to respond to the mandate set by the Indonesian President, to develop downstream products,” said Dany.

Currently, the global market for electric vehicles continue to grow up to 21.7% of the consolidated annual growth rate. Moreover, batteries are one of the main cost components for electric vehicles, which currently reach about 35% of the total costs.  Therefore, batteries are key components in the electric vehicle industry, particularly in terms of storage capacity.

“The increasing capacity of battery storage is a very important matter for the development of renewable energy, in Malaysia as well as Indonesia. The Malaysian Energy Commission has made a commitment to adopt battery storage technology of up to 500 MW. With Malaysia’s strategic location for potentially abundant solar power, the Government is very proactive in selecting the suitable area to adopt solar power, particularly for the Battery Energy Storage System,” said the Executive Chairman & President of Citaglobal and key shareholder Tan Sri Dato' Sri (Dr.) Mohamad Norza Zakaria.

“We are honoured and await the productive collaboration and benefits with IBC. Cross country collaboration will enable both sides to utilize their respective expertise and accelerate the process of raising low carbon resources,” he added.

The MoU covers a period of one year and takes effect upon the date of signing. This collaboration is also a form of acceleration on IBC’s readiness as the key player of the electric vehicle battery industry, particularly in terms of technology.

“We welcome Malaysia and Citaglobal as our partners in building our ability and raising our competitiveness to become the key player in the battery and electric vehicle ecosystem. In IBC, our mission is to support the growth of the national electric vehicle so that we can become the production base in ASEAN.  We hope to be able to collaborate with various global partners such as Citaglobal in achieving our mutual goals,” said President of IBC, Toto Nugroho.

As added information, in October 2022, Citablogal has signed an agreement with Genetech Technology Bhd on a wide-based and exclusive multi-angle collaboration, as well as strategic collaborative arrangement in the development of BESS to store and manage excess energy during renewable energy generation.