Development of a Battery Manufacturing Industry Roadmap Tender, USA - 100251016

Procurement Summary

Country : USA

Summary : Development of a Battery Manufacturing Industry Roadmap

Deadline : 29 Apr 2024

Other Information

Notice Type : Tender

TOT Ref.No.: 100251016

Document Ref. No. : 0002008482

Competition : ICB

Financier : World Bank (WB)

Purchaser Ownership : Public

Tender Value : Refer Document

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Tender Details

Expression of Interest are invited for Development of a Battery Manufacturing Industry Roadmap for Indonesia.

Publication Date: 04/19/2024 12:00 AM EDT

EOI Deadline: 04/29/2024 11:59 PM EDT

Description: Indonesia is aiming to establish a comprehensive domestic electric vehicle (EV) supply chain, encompassing everything from mining and processing battery metals to the production of precursor cathode active materials, battery cells, battery packs, EVs, and eventually, battery recycling. The government's ambitious target is to achieve an annual production capacity of 140 GWh for EV batteries by 2030, starting from zero production today. About one-third of this future production is earmarked for export, while the remaining portion is intended for the emerging domestic EV industry. Indonesia's 2030 goal is comparable to the total global EV battery production in 2020 (160 GWh). However, due to rapidly increasing demand, this output is estimated to constitute only around 4 to 9 percent of the projected global demand in 2030, as forecasted by the International Energy Agency, depending on the scenario applied.

Indonesia's drive to become an EV battery producer and exporter is motivated by both upstream and downstream considerations within the supply chain. Upstream, as the world's largest nickel producer, the country aims to leverage its abundant natural resources. Encouraging foreign investments in nickel processing allows for value addition to mined nickel ore, as opposed to merely exporting it. Nickel and cobalt, crucial ingredients for most current EV batteries, are by-products of nickel processing for batteries in Indonesia. Downstream in the battery supply chain, Southeast Asia's largest and expanding car market seeks not only to attract foreign investment in the EV industry but also to cultivate a domestic EV market to mitigate greenhouse gas (GHG) emissions. Presidential Regulation No. 55/2019 emphasizes the development of a domestic EV industry as a national priority to enhance energy efficiency in the transportation sector, aligning with Indonesia's commitment to reduce GHG emissions.

Converting Indonesia-s rich natural resource endowment into an effective battery manufacturing industry has been hampered by an absence of a strategic policy to grow investment opportunities in the sector. Thus far, a number of investments have been announced upstream and downstream, but midstream investments remain lacking. The objective of this cooperation is therefore to develop a policy and roadmap for the Government of Indonesia to implement to boost investment in battery manufacturing, by assessing the potential development of the sector/value chain, the associated job creation, and the ensuing growth together with a series of actions that would need to sequentially take place for the creation of a competitive battery manufacturing industry.

The policy will build on global best practices and lessons learned from countries with experience in the development of battery industry value chains (for example, China, Korea, Chile, the United States, with a focus on Morocco from its successful experience in growingits auto industry ecosystem) and explore typical pre-conditions for investment.

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