Indonesia, South Korea’s LG Group Sign Electric Vehicle Battery MOU Worth $9.8 Billion

JAKARTA, KOMPAS.com – Indonesia and South Korea’s LG Group have signed a memorandum of understanding (MOU) on an electric vehicle (EV) battery project worth $9.8 billion, the country’s investment chief said on Wednesday.

Bahlil Lahadalia, head of Indonesia’s Investment Coordinating Board, said that the agreement, which includes investment across the EV supply chain, was signed on December 18, Reuters news agency reported.

The agreement, Bahlil said, made Indonesia the first country in the world to integrate the electric battery industry from mining to producing electric car lithium batteries.

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“We have signed an MOU for the construction of an integrated electric battery factory from upstream to downstream,” Bahlil said as quoted by Kontan.co.id on Thursday, December 31.
“Mines, smelters, precursors, cathodes, cars, and recycling facilities will be built in Indonesia,” he said, adding that the project will be located in North Maluku and Central Java.

Under the MOU, Bahlil added, at least 70% of the nickel ore used to produce the EV batteries must be processed in Indonesia.

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Indonesia aims to start processing its rich supplies of nickel laterite ore for use in lithium batteries as part of a bid to eventually become a global hub for producing and exporting EVs.

Earlier this month, the Indonesian government said that US automaker Tesla will send delegations to Jakarta in January to discuss potential investment in a supply chain for its electric vehicles.

(Editor: Bambang P. Jatmiko)

Source: https://money.kompas.com/read/2020/12/31/080300926/ri-jadi-negara-pertama-di-dunia-yang-punya-industri-baterai-mobil-listrik-hulu.