TUL Corp suspends Batam battery recycling plan amid shifting market conditions

By Dominikus

TUL Corp has suspended its plan to establish a lithium battery recycling facility in Batam, Riau Islands Province, citing changes in the broader economic environment, the company said in a clarification released on Monday (16 March).

The Taiwan-listed company, chaired by Zhang Maosong, issued the statement in response to previous media reports published in July 2024 that said it was planning to develop a new plant in Batam targeting the lithium battery recycling sector and seeking entry into the supply chain of major battery manufacturers.

The reports indicated that the project would involve an initial investment of around NT$300 million, covering black mass procurement as well as the installation of battery pre-treatment and physical dismantling facilities. The plant was initially expected to begin production in the fourth quarter, followed by trial production in the first quarter of the following year and a gradual ramp-up to full utilization.

In its clarification, TUL Corp said the proposed project was to be carried out in cooperation with UWin Nanotech Recycling Co., Ltd., an investee company in which TUL and its subsidiaries collectively hold a 15.76% stake.

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UWin is primarily engaged in the supply of recycled lithium carbonate materials, forming part of the broader battery recycling and circular economy segment.

TUL Corp confirmed that it had originally planned to cooperate with UWin on a technology partnership to establish the Batam facility. However, the company has decided to suspend the plan, citing changes in economic conditions and the need to safeguard shareholder interests.

The company also clarified that any certifications or customer engagements mentioned in earlier reports, including potential links to major battery manufacturers, were undertaken independently by UWin and not by TUL Corp itself.

TUL Corp said it did not participate in those activities and was only informed afterward, adding that media reports related to its investee businesses may not fully reflect the company’s actual involvement.

The decision highlights the uncertainties facing investment in the battery recycling sector, even as Indonesia continues to attract interest as a key hub in the global electric vehicle supply chain.

Editing by Reiner Simanjuntak