A key part of the collaboration between Citaglobal and IBC is to design, develop and build integrated turnkey manufacturing facilities for battery cells, modules and packs for electric vehicles (EVs).

It will also include the development of BESS integrated solutions and the transfer of related technologies and know-how for the development of a battery plant.

A memorandum of understanding for the collaboration was signed today by Citaglobal executive chairman and president Norza Zakaria and IBC president director Toto Nugroho, witnessed by Prime Minister Anwar Ibrahim who is on his first official visit to Indonesia.

The battery is one of the main price components of an EV, accounting for up to 35% of the production cost.

The global EV market is growing at a compounded annual rate of 21.7%.

Norza said scaling up battery storage is therefore critical for the development of renewable energy for both countries.

“The Energy Commission of Malaysia has made known its intention to adopt storage technology for batteries with capacity of up to 500MW. With Malaysia’s strategic location for high solar power potential, our government has been proactive in choosing areas that are suited for solar power adoption,” he says.

For IBC, Nugroho said, the objective is to support EV growth so that Malaysia can become the base of production in Asean.

Citaglobal is a diversified group that is involved in energy, telecommunication infrastructure, civil engineering and construction as well as manufacturing and property.

This is the company’s second collaboration on energy storage system. In October last year, Citaglobal signed a similar deal with Genetec Technology Bhd for the development of BESS to store and manage excess power during the generation of renewable energy.

IBC is a state-owned company whose shareholders are Mining Industry Indonesia, PT Aneka Tambang Tbk, PT Pertamina and Perusahaan Listrik Negara. They each hold a 25% stake in the company.