- The MoU will see the battery pioneer target securing a sustainable supply of nickel sulphate, an essential ingredient in its high performance next-gen battery technologies.
- VKTR has been looking to identify a battery technology partner to support the development of localized battery production capabilities of around 15GWh via a strategic joint venture.
- Creating lower carbon, transparent supply chains, and securing raw materials, is a key part of Britishvolt’s strategic roadmap as well as embedding its own Environmental, Social and Governance [ESG] principles and commitments with its partners.
- The first phase of the cooperation between VKTR and BV will focus on the establishment of nickel sulphate facility in Indonesia, that will align with BV’s ESG commitments and principles, to supply BV’s Northumberland Gigaplant.
- The UK Government and Government of Indonesia are currently in talks to collaborate on areas such as electric vehicles and offshore wind.
Northumberland, 30/03/2022: Battery pioneer Britishvolt and VKTR, a new division of Bakrie Autoparts, a part of Bakrie & Brothers, have signed a Memorandum of Understanding [MoU] to partner on the development of a transparent and lower carbon supply of nickel sulphate from Indonesia as well as a battery technology R&D roadmap.
The first phase of the cooperation between VKTR and Britishvolt will focus on the establishment of a nickel sulphate facility in Indonesia, that will align with BV’s ESG commitments and principles, to ensure the supply of the battery raw material to Britishvolt’s first full-scale Gigaplant in Northumberland, UK.
The Parties intend to develop a joint venture under the corporate name of INDOVOLT BV VKTR. The business plan shall initially and primarily focus on upstream supply security for nickel through to sulphate conversion and in line with Britishvolt’s Environmental, Social, and Governance (ESG) standards. VKTR shall secure the portion of nickel supply for Britishvolt in terms of tonnage and timing, which should be confirmed within the next five months.
As the world transitions away from fossil fuels to renewable energy, low carbon, sustainable batteries will be at the very core of a successful switch. Currently there are clear market signals of the need to secure strategic relationships in order to guarantee supply of key raw materials such as nickel sulphate.
Indonesia is the world’s largest nickel producing country and is rapidly building out its own electric vehicle industry. This deal will support the country’s 2060 net-zero commitments.
Bakrie & Brothers is a leading industrial company listed on the Indonesia stock exchange. https://bakrie-brothers.com
The initial agreement will be followed with a study looking at the potential to develop a battery Gigaplant in Indonesia, and potentially other locations. A prime focus of the partnership will be on how to drive embedded carbon out of the supply chain. It is BV’s aim to get the carbon content of its battery production to 25kg/KWh, from a global average of 93kg/KWh.
“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.”
Orral Nadjari, CEO/Founder of Britishvolt
“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”.
Minister for Investment, DiT/BEIS Lord Grimstone
“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.
VKTR is looking to build an integrated transport electrification, EV battery ecosystem in the Indonesia market spanning battery-powered buses, cars and infrastructure, through synergies with Bakrie & Brothers’ portfolio companies. VKTR possesses a unique competitive advantage in upstream nickel metal supply security, nickel sulphate conversion, and its recent downstream electric buses deployment within the Indonesia market.”
Anindya Bakrie, Chairman and Founder of Bakrie Centre Foundation;
Chairman of Supervisory Board at the Indonesian Chamber of Commerce and Industry [KADIN]
The partnership will see BV and VKTR develop nickel refining capacity in Indonesia, eventually powered on renewable energy, giving the country increased value add in the rapidly growing battery supply chain. The need for refining capacity in countries where raw materials is mined was flagged as a key priority at the recent FT Commodities Global Summit in Switzerland.
The news follows on from BV’s strategic partnership with Glencore for the supply of responsibly sourced cobalt, another vital battery raw material.
“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 (E). At the same time we will create in-country value in Indonesia, rather than refining just export (S). 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.”
Timon Orlob, Global Chief Operating Operator, Britishvolt
- (a) Britishvolt is looking for a partner that can guarantee security of supply for nickel and sulphates whilst expanding into new markets via a joint venture.
- (b) VKTR and Britishvolt recognize challenges in the extended supply chain and looking for information exchange and joint development of solutions from mine to cell, in addition to the recycling of battery materials.
- (c) VKTR and Britishvolt want to enter into a strategic partnership for nickel supply and battery production
Britishvolt’s Gigaplant will create thousands of skilled jobs, regenerating a site that was previously home to the UK’s largest coal-fired power station. This is true transformation for the area, bringing much needed employment and investment to the region. It is also building a supply park for its collocation strategy in Northumberland that has the potential to re-shore, amongst other things, refining capabilities and power them on renewable energy.
Britishvolt story to date
Britishvolt is on target to responsibly manufacture some of the world’s most sustainable, low carbon, battery cells on the site of the former Blyth Power Station in Cambois, Northumberland. The status quo is no longer sustainable.
HM Government announced January 21 their support for Britishvolt in an in principle offer of funding made through the Automotive Transformation Fund, via the Advanced Propulsion Centre. This enabled a long-term partnership with Tritax and abrdn that will deliver £1.7bn in private funding to build the Gigaplant shell and core, and develop the collocation supplier park.
It has developed its first A-Sample cells at UKBIC, announced two high-performance OEM customers in the shape of Lotus and Aston Martin to develop next-gen battery cell technologies and is working on a lithium-ion battery recycling joint venture with strategic partner Glencore.
The Gigaplant development is a major boost for Northumberland, and Britain, delivering around 3,000 direct skilled jobs and another 5,000+ in the associated supply chains.
Advanced works started on the site in September 2021, following a unanimous planning decision approval. The project will be built in four phases, to keep up with technology advancements, and will have a total capacity of over 38GWh by the end of the decade.
At capacity, the Gigaplant will produce enough cells for well over 300,000 electric vehicle battery packs per year, intended primarily for the automotive industry.
It will be the company’s first large, full-cycle, Gigaplant in the UK.
Britishvolt believes that locally produced, low carbon, sustainable, responsibly manufactured battery cells can literally help save the planet. The time has come to transition from fossil fuels to renewable, low carbon electricity. The world deserves a clean air future for all. The status quo is no longer sustainable and not all batteries are made equal.
Britishvolt is Britain’s foremost investor in battery cell technologies and research and development. It is dedicated to developing the future of electrified transportation and sustainable energy storage, producing best-in-class, low-carbon, sustainable, responsibly manufactured lithium-ion battery technologies.
Britishvolt’s aim is to establish the UK as the leading force in battery technology, and associated ecosystem infrastructure. It is working with leading strategic partners/suppliers to achieve this, as it is of paramount importance to the future of the UK automotive industry and the overall economic and industrial health of the country. The company is built on a foundation of ESG Principles and Commitments.
Britishvolt believes that the UK is the right place for its initial investments because of the strength of its automotive and renewable energy industry alongside its expertise and history in industrial and academic battery R&D. As well as the UK Government’s foresight in creating a world-class battery ecosystem.
Certain statements in this press release concerning our future growth prospects are forward-looking statements regarding our future business expectation intended to qualify for the ‘safe harbor’ under the U.S. Private Securities Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements.
The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, competition including those factors which may affect our cost advantage, equipment procurement, wage increases, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time contracts or time and material construction contracts, customer concentration, restrictions on immigration, industry segment concentration, our ability to manage international operations, reduced demand, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages related to battery service agreements, the success of the companies in which Britishvolt has made strategic partnerships, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies and unauthorised use of our intellectual property and general economic conditions affecting our industry. In addition, please note any forward-looking statements contained herein are based on assumptions we believe to be reasonable as of the date of this press release.