Indonesia is building a lithium refinery and an anode material production facility to complement its nickel-based battery materials industry, an official said, as it aims to set itself up as a hub for making electric vehicles (EVs), Report informs referring to The Economic Times.

Investors are currently building a lithium hydroxide plant with 60,000 tonnes capacity in the heart of the nickel industry in Morowali, Septian Hario Seto, a Deputy Coordinating Minister for Maritime and Investment Affairs, told an industry conference.

An anode material plant with 80,000 tons capacity is set to start construction in January, he added.

Both materials are needed to make EV batteries.

“We are building an ecosystem, so we are not only producing nickel- and cobalt-based components alone,” he said.

Indonesia has already started producing EV battery parts extracted from nickel, but other materials are also needed to produce EV batteries, Seto said.