Indonesia in $9.8 bln electric vehicle battery deal with Korea's LG

Nickel smelting at an Indonesian facility in Soroako, South Sulawesi
Nickel smelting at an Indonesian facility in Soroako, South Sulawesi

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 , 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.

"(LG) have the market and technology. But Indonesia has extraordinary reserves of raw materials," he said.

"If we combine the two, I believe this investment will (make us) one of the important players in the world".

Some other foreign firms are investing in nickel-battery processing plants in Indonesia, including China's Tsingshan Holding Group.

US-based electric vehicle maker Tesla has reportedly expressed interest in potential EV battery investments in Indonesia.


Explore further

Indonesia wants to lure SpaceX to build rocket launch site

© 2020 AFP

Citation: Indonesia in $9.8 bln electric vehicle battery deal with Korea's LG (2020, December 31) retrieved 16 June 2021 from https://techxplore.com/news/2020-12-indonesia-bln-electric-vehicle-battery.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
6 shares

Feedback to editors

User comments