With the automotive world transitioning to be more accepting of electric vehicles (EVs), demand for batteries that power them also grows. Indonesia is rich in resources needed for battery production like nickel and its ministers are wooing companies to set up plants and invest in the archipelago.
Indonesia’s Minister of Investment, Bahlil Lahadalia recently revealed that Volkswagen will build an EV battery ecosystem in the country. The German automaker will work with Brazilian miner Vale, American carmaker Ford, China’s Zhejiang Huayou Cobalt, French miner Eramet, as well as several Indonesian firms like Merdeka Gold Copper and Kalla Group.
In a video statement from Germany, Bahlil said that the partnership would consist of joint ventures and supply of raw materials. The minister is part of an Indonesian delegation led by President Joko Widodo that is meeting representatives of German companies including Volkswagen and chemical giant BASF.
Also read: Cheaper than e-Up! Electric 2025 VW ID.2all to be the cheapest Golf variant, cheaper than TSI
In a statement, Volkswagen said, “Indonesia is an important and interesting country in terms of raw materials and we are in a positive exchange with the government and suppliers.” Indonesia also has the world’s biggest nickel reserves.
Also read: VW Group’s EV boss praises Indonesia for its clear economic plans and cultural diversity
The battery plant is expected to be built in the North Maluku province with works expected to begin by the end of 2023. Volkswagen has said that it plans to invest €180 billion (RM 875 billion) over five years in areas including battery production and raw material sourcing.
There have been a few EV battery makers that have invested in Indonesia by setting up plants in the country. The most recent is South Korean manufacturer LG Energy Solution which is currently building its plant in the Central Java province.
Source: Volkswagen to set up EV battery plant in Indonesia as demand grows