- Tsingshan will build 2 GW of solar and wind energy facilities in Indonesia to use clean energy for raw material production
- The green powered raw material will be supplied to global electric vehicle battery industry
- In other plans for the group to go green in its production processes, Tsingshan said it plans to invest in 5 GW of hydropower capacity
Metals production company from China, Tsingshan Holding Group will develop and construct 2 GW of solar and wind energy capacity along with supporting facilities in Indonesia, with an aim to power the production of raw materials for batteries used in electric vehicles (EV), with clean energy.
Zhejiang headquartered Tsingshan mainly produces stainless steel products for use in various industries including petroleum, chemicals, power generation, food, pharmaceuticals, among others. It also produces raw materials, intermediate products and new energy batteries needed for energy storage systems and EVs.
Tsingshan said it will build the 2 GW solar and wind energy capacity in Indonesia Morowali Industrial Park (IMIP) and Indonesia Weda Bay Industrial Park (IWIP) within the next 3 years to 5 years with an aim to reach zero carbon emissions in its production processes. IMIP in Sulawesi is the ‘world’s first fully integrated stainless-steel industrial chain’, while IWIP in North Maluku has laterite nickel ore resources around it.
The decision to invest in clean energy follows 6 months of intensive feasibility studies and careful planning by the group, which it stressed will lay the clean energy groundwork for further green developments. Future plans include a 5 GW hydropower project to enhance its ‘energy assurance’.
The group has an annual production capacity of up to 10 million tons of crude stainless steel and 300,000 tons of nickel with manufacturing bases in Fujian, Guangdong and Zhejiang in China, while Indonesia, India, Zimbabwe is where it is building its international presence. In 2021, it expects to produce 600,000 tons of nickel equivalent, 850,000 tons in 2022 and 1.1 million in 2023. Its main target clientele for nickel is power batteries.
Bloomberg believes these plans would make the group the world’s ‘largest nickel producer’, one that also touts a green supply, and that its plans to supply carmakers with cheap, clean metal ‘could be its biggest breakthrough yet’. It referred to a February 26, 2021 tweet of Tesla chief Elon Musk that went like, “Nickel is our biggest concern for scaling lithium-ion cell production. That’s why we are shifting standard range cars to an iron cathode. Plenty of iron (and lithium)!”
Bloomberg went on to add, “Tsingshan’s financial might and history of innovation suggest that, within a few years, it may emerge as a top supplier of green nickel.”