The American company Freeport-McMoRan is close to an agreement with the Chinese Tsingshan Holding Group to build a copper smelter in the Indonesian industrial center of Weda Bay. This was stated by the Indonesian Minister of Maritime Affairs and Investment.
The nearly $ 3 billion project would be a key element in the production of copper tubes and wires worth more than $ 10 billion a year. With reference to Indonesian sources, Reuters reported.
However, over time, the device should also produce other copper components that are used as components in the production of lithium batteries. The project is to help meet the government’s goal of creating a robust supply chain for the production of electric cars.
Although it has not been officially announced when the smelter could start operating, it can be assumed that it should be as early as 2023. The Indonesian Minister for Maritime Affairs and Investment, Luhut Pandjaitan, said that at that time another facility should already supply nickel, also needed for the production of lithium batteries. And Indonesia wants to start marketing them in 2023.
Indonesia is trying to attract foreign investors who would be willing to start producing not only batteries but also other components for electric cars in the country.