SET-listed BCPG, the power generation arm of energy conglomerate Bangchak Corporation, is looking for a new investment opportunity in Indonesia related to nickel, a key raw material for making electric vehicle (EV) batteries.
The idea came after talks with Indonesia Battery Corporation (IBC), which operates a nickel mining business and aims to grow businesses related to battery EVs and the EV ecosystem.
"We initially talked about collaborating, but those talks proved inconclusive," said Rujiroj Leelaruji, vice-president and energy innovation specialist at BCPG, adding that a future investment project needs approval from Bangchak.
BCPG is seeking a new business opportunity in nickel mining to expand Bangchak's upstream business in lithium mining, he said.
In 2017, Bangchak invested in a lithium mining business in Argentina, part of the company's plan to embark on EV-related businesses that are being promoted by the Thai government.
Mr Rujiroj met IBC executives during the first Asean Battery and Electric Vehicle Technology Conference in Bali, Indonesia. The three-day event ended on May 11.
"IBC is interested in working with foreign investors, especially those in the power industry, because it has experience in mining, but none in electricity or EVs," he said.
Indonesia has the potential to become a major EV market because of its large population of 278 million, a figure calculated by the UN Population Fund. In Bali alone, there are up to 4 million electric motorcycles.
BCPG operates renewable power generation facilities in Thailand and overseas. The company also owns a battery business and is studying how to benefit from hydrogen energy technology. Bangchak expects its lithium mining output will be gradually supplied to the market in the second half of 2023. The lithium mine has a production capacity of 6,000 tonnes a year.
