After Ford and Hyundai, Tesla is preparing to invest in the country, which is rich in the much-needed metal for manufacturing EV batteries. However, environmentalists are critical of the lack of transparency in these green projects.
Indonesia woos Tesla, Chinese and South Korean firms, in bid for electric vehicle battery crown Elon Musk. Photo: Getty Images
As momentum grows for the adoption of electric vehicles in Asia, Indonesia is hoping to become a key part of the supply chain by becoming a major producer of lithium-ion batteries.
Southeast Asia s largest economy owns one-quarter of the world s reserves of nickel - a key material in the production of the batteries - and as a country controls the world s largest reserves, ahead of Australia and Brazil.
Indeed, the country is a hinterland for many of the raw materials essential for the manufacturing of EV batteries , not only for nickel, but for cobalt and copper too, according to Andrey Berdichevskiy, director at Deloitte s Future of Mobility Solution Centre in Singapore.
Indonesia In $9.8 Bln Electric Vehicle Battery Deal With Korea s LG
12/30/20 AT 8:16 AM
Indonesia said Wednesday it had signed a $9.8 billion electric vehicle battery deal with South Korea s LG as it moves to become a global production hub for the green technology.
The agreement was signed in mid-December, with investments planned in production and supply chains for lithium batteries, which rely on nickel.
Mineral-rich Indonesia is a major producer of the metal.
Initial development will kick off in February, including plans for a mine and smelter in the remote Maluku islands, said Indonesia s Investment Coordinating Board head, Bahlil Lahadalia. Nickel smelting at an Indonesian facility in Soroako, South Sulawesi Photo: AFP / Bannu MAZANDRA