LME clearing house unveils reforms, to triple member capital requirements
The exchange also said that LME Clear would reduce the amount members have to contribute towards its default fund.
Electric vehicle (EV) battery startup Britishvolt and VKTR, part of Bakrie & Brothers’ auto unit, said on Tuesday they would develop sustainable nickel refining capacity in Indonesia and look into building a battery plant there.
The two companies will form a joint venture called Indovolt BV VKTR, to provide nickel sulphate, a crucial ingredient for high-performance EV batteries, which will eventually be produced using renewable energy in line with Britishvolt’s environmental, social, and governance (ESG) goals.
“I am proud to be helping establish a secure supply of nickel to the UK at a time when raw materials are in the spotlight,” Britishvolt chief executive Orral Nadjari said in a statement.
Indovolt will also look at other countries for potential battery plants. VKTR has been looking for a partner to build a 15 Gigawatt hour (GWh) battery plant in Indonesia.
The deal comes at a time of surging raw materials prices, exacerbated by the invasion of Ukraine by Russia and the international sanctions that have followed it.
Indonesia is a top nickel producer and has harboured ambitions of processing its nickel laterite ore and becoming a global hub for producing and exporting EVs.
Last week, Volkswagen, Huayou Cobalt and Tsingshan Group signed a deal focused on nickel and cobalt raw material production in Indonesia – home to more than 10% of global laterite nickel ore reserves.
State-owned Indonesia Battery Corporation (IBC) and South Korea’s LG are also building a battery plant in Indonesia worth $1.2 billion with 10 GWh of capacity.
Last month, Britishvolt launched a Series C funding round with a starting investment of 40 million pounds ($52.4 million) from shareholder Glencore.
It has also secured UK government backing for a 45 GWh battery plant project in northern England, unlocking 1.7 billion pounds ($2.3 billion) in private funding.
Britishvolt has signed up British carmakers Aston Martin and Lotus as customers.
($1 = 0.7641 pounds)
(By Nick Carey; Editing by Jane Merriman)
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