Indovolt BV VKTR: Joint Venture for Nickel Supply and Battery Production

Indovolt BV VKTR, a joint venture formed through a memorandum of understanding between the two companies, will be responsible for nickel supply and battery production. Initially, the JV will work on a nickel sulfate refinery in Indonesia that will ultimately be powered by renewable energy, Britishvolt said.

The partnership would help “establish a secure supply of nickel to the UK at a time when raw materials are under the microscope as the age of the battery kicks into gear,” Orral Nadjari, the chief executive of Britishvolt, said in a statement. “Secure, sustainable supply chains are key to achieving a successful energy transition.”

The supply of nickel in Indonesia will adhere to stringent environmental, social, and governance standards, the Britishvolt Chief Communications Officer Ben Kilbey said to S&P Global Commodity Insights. Indonesia does not have a stellar reputation for environmentally friendly nickel mining.

“We are going to be cascading best practices into our supply chain. Our target is 25 kg/kWh of CO2; industry is 66 kg/kWh,” Kilbey said.

According to Kilbey, Bakrie & Brothers has a strong vision in building Indonesia's renewable energy infrastructure to energize a clean air future for the Indonesian people, #WithElectrificationofMobility, while increasing the country's & renewable energy production and distribution.

S&P Global Commodity Insights assessed spot battery-grade nickel sulfate minimum 22% nickel and maximum 100 ppb magnetic material at Yuan 45,000 ($7061.70)/mt DDP China March 28, up 32.7% since the beginning of 2022.

Britishvolt broke ground in early September 2021, on its GBP2.6 billion ($3.4 billion), 30 GWh lithium-ion battery gigaplant in Blyth. The gigafactory shall be constructed in three 10 GWh phases. Britishvolt also intends to construct a second 60 GWh gigafactory in Quebec.

The company's strategic path includes the development of low-carbon, transparent supply chains and supply assurance for raw materials. Britishvolt has already secured a strategic deal with Glencore for responsibly sourced cobalt.

Localized Battery Production

The proposed gigafactory, which would be built in Indonesia and potentially other locations, is part of a wider drive by Britishvolt to find a carbon capture and storage solution to drive embedded carbon from the supply chain, Britishvolt said.

Kilbey said details on ownership and operatorship of any new gigafactories would be established in the months ahead. “Everything that’s on the table … I think we see the relationship mature and evolve into a fully formed JV,” Kilbey said.

VKTR has access to nickel metal supply and the ability to convert to nickel sulfate. Recently, the company has also enabled electric buses in Indonesia.

The Indonesian firm has been seeking a battery tech partner to assist the development of locally produced batteries of around 15 GWh through a J/V. VKTR will provide some of Britishvolt's supplies of nickel, with specifics of the supply to be announced later in 2022.

Now Indonesia, the biggest producer of nickel, is also building an electric vehicle industry of its own. The country hopes to achieve net-zero carbon emissions by 2060.

Britishvolt said the UK Government and Government of Indonesia are in discussions to work together on electric vehicles value chains and offshore wind power generation.

Britishvolt Global COO Timon Orlob said, "We will create in-country value in Indonesia, rather than refining only for export. The agreement gives us nickel security from the world’s largest supply base."