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Investor Presentaiton

Manufacturing Industry Indonesia's midstream industry is lagging behind in becoming a complete end-to-end producer of nickel-based EV batteries Upstream Sector Nickel Mining Laterite- Saprolite Ore Matte Chemical Production Nickel Sulfate Mid-stream Sector Downstream Sector Component Production Cell Production Battery Pack Production EV Production & Operation Reuse Recycling Cell Pack EV-Battery Integration Second life battery (ESS) Black Mass RKEF FeNi Cobalt Sulfate Cathode (NMC) Laterite- Limonite Ore MHP HPAL Mangan Sulfate /STAL Sources: IESR analysis (Notes: based on interview) Lithium Hydroxide/ Carbonate Graphite + Battery Foil Anode Polyolefin/ Glass Fiber Separator Carbonate Solvent Mix + Lithium Salt Electrolyte Battery Management System (BMS), Housing, Wiring Exist commercially Exist small scale (SME/Lab) Not exist Indonesia Electric Vehicle Outlook 2023 • The Indonesian government is securing lithium hydroxide supply through IA-CEPA and building a 60 kiloton/year lithium refinery for the midstream industry. However, a planned battery industry partnership (IBC-LGES) with a capacity of 30 GWh faces potential cancellation. Another project (IBC-CBL) is underway to set up active material production facilities with a planned start date in Q3 2025 and battery production facilities with a capacity of 15 GWh in Q2 2026. Investments from Foxconn-Indika and potential investments from Tesla offer growth opportunities for the industry, but uncertainty about the start date of battery production facilities still limits the absorption of MHP upstream products by the domestic EV battery midstream industry. 29 29
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