Battery pioneer Britishvolt has signed an agreement with an Indonesian corporation to secure supplies of a vital compound at its Northumberland gigaplant.
Britishvolt has signed a Memorandum of Understanding with VKTR, a new division of Bakrie Autoparts which forms part of the wealthy Bakrie & Brothers family business, to partner on the development of a “transparent and lower carbon” supply of nickel sulphate from Indonesia, as well as a battery technology research and development roadmap.
The first phase of the agreement will see the firms work together on developing a nickel facility in Indonesia that can supply battery manufacturers, including Britishvolt’s first full-scale gigaplant at Blyth, Northumberland.
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The parties intend to develop a joint venture under the corporate name of Indovolt BV VKTR, initially focussing on supplying the nickel before looking at the potential to develop a gigafactory in Indonesia, which is the world’s largest nickel producing country, as well as other locations.
Indonesia is rapidly building out its own electric vehicle industry and the deal with Bakrie & Brothers – a leading industrial conglomerate listed on the Indonesia stock exchange – will support the country’s 2060 net-zero commitments.
Construction work to create a gigafactory on the former coal yards at the old Blyth Power Station is under way and the plant is due to open in 2024.
There are hopes it will create 3,000 direct jobs and another 5,000 in its supply chain.
Funding from the Government of “tens of millions” led to £1.7bn backing from finance groups Tritax and abrdn, while Britishvolt is also hoping to raise another £200m to support its plans.
News of this agreement follows on from Britishvolt’s strategic partnership with Glencore for the supply of responsibly sourced cobalt, another vital battery raw material, a deal which saw the mining giant take a stake in the company.
Timon Orlob, global chief operating operator at Britishvolt said: “These announcements demonstrate Britishvolt’s commitment to securing essential battery cell ingredient nickel sulphate.
“We will bring our ESG considerations and expertise to the supply chain.
“At the same time we will create in-country value in Indonesia, rather than refining just export. The deal gives us security of nickel from the largest source in the world. Indonesia has G20 presidency and by partnering with BV it will help accelerate the country’s 2060 net-zero ambitions.”
Orral Nadjari, CEO and founder of Britishvolt said: “Indonesia has enormous, unprecedented potential that will see global investment flow into the country as it aims to become a world leader on the international battery stage. I am delighted to be part of Indonesia’s journey to net-zero, and I look forward to seeing the outcome of this partnership with VKTR. I am also proud to be helping establish a secure supply of nickel to the UK at a time when raw materials are in the spotlight as the age of the battery really gets going. Secure, sustainable supply chains are essential for a successful energy transition.”
Anindya Bakrie, chairman and founder of Bakrie Centre Foundation and chairman of supervisory board at the Indonesian Chamber of Commerce and Industry, said: “VKTR is pleased to have signed the MoU with Britishvolt and is looking forward to collaborating with the battery pioneer to develop a greener battery manufacturing supply chain.
“The support of VKTR for this partnership is part of the forward-thinking commitment of Bakrie Group, on its 80th anniversary.
“We embark on a new chapter focused on the 3Cs – Climate, Covid-19 and Capital trends. VKTR will help support the energy transition in Indonesia, in the race to zero.”
Minister for Investment Lord Grimstone said: "The UK is leading the way towards zero emissions, and an essential part of our automotive industry’s transition is ensuring sustainability across the entire supply chain and lifespan of electric vehicles.
“This collaboration, which follows the Indonesian Investment Minister's visit to the UK recently, marks the start of a sustainable supply chain of critical minerals to Britishvolt’s planned Gigaplant in Northumberland. This will support jobs, level up the UK, and boost the production of electric vehicles in the UK for a cleaner, greener future."
