Citaglobal has entered into a Memorandum of Understanding (MOU) with Indonesia Battery Corporation (IBC) for the proposed development of a battery cells manufacturing plant and Battery Energy Storage System (BESS).
The signing of this MOU was executed between Citaglobal Executive Chairman & President, Tan Sri Dato’ Sri (Dr.) Mohamad Norza Zakaria and IBC President Director, Toto Nugroho. The signing ceremony was witnessed by the Prime Minister of Malaysia, YAB Dato’ Seri Anwar Ibrahim, who was making his first official visit to Indonesia since his appointment as Prime Minister.
There are three key principles and collaboration in this MOU between Citaglobal and IBC, namely, the development, design and building of integrated turnkey manufacturing facilities for battery cells, modules and packs; the development of BESS integrated solutions; and the transfer of related technologies and know-how for the development of a battery plant and BESS.
The execution of this MOU augurs well for both sides, which has strategic plans and focus to expand meaningfully into the renewable energy space.
The global market for electric vehicles is growing continuously at a compounded annualised growth rate of 21.7%. The battery is one of the main cost components for electric vehicles, making up some 35% of this cost at this moment.
“Scaling up battery storage is critical for the development of renewable energy whether in Malaysia or Indonesia. The Energy Commission of Malaysia has made known its intentions of adopting up to 500 MW of battery storage technology. With Malaysia’s strategic location for high solar power potential, our government has been very proactive in choosing areas that are suited for solar power adoption, especially for Battery Energy Storage Systems,” said Citaglobal’s Executive Chairman & President and major shareholder Tan Sri Dato’ Sri (Dr.) Mohamad Norza Zakaria.
“We are honoured and look forward to a productive and fruitful collaboration with IBC. A cross-country collaboration will allow both parties to leverage on each other’s expertise and quicken the process of increasing low-carbon power sources,” he added.
“We welcome Citaglobal as our partner to increase our competitiveness to become a key player in the battery and electric vehicle ecosystem. In IBC, our mission is to support national electric vehicle growth so that we can become the base of production in ASEAN. We look forward to work together with our global partners in reaching our goal,” said IBC’s President Director, Toto Nugroho.
Meanwhile, this MOU is effective immediately from the date of execution and shall remain in effect over the next one year.
IBC is established by four Indonesian state-owned enterprises (PT Aneka Tambang Tbk (ANTAM), Mining Industry of Indonesia (MIND ID), Perusahaan Listrik Negara (PLN) and PT Pertamina) and headquartered in Jakarta with the vision of maximising Indonesian natural resources through the development of battery electric vehicles and the battery industry ecosystem in Indonesia.
