Indonesia is expecting more international investment to inject into its EV segment. PowerCo, Volkswagen’s battery subsidiary, has expressed interest in building a battery ecosystem in Indonesia with partners like Ford, Vale and Huayou Cobalt.
Indonesian president Joko Widodo led a delegation to visit Germany for the Hannover Messe 2023, the world’s largest exhibition for industrial technology. According to Indonesia’s Cabinet Secretariat, Jokowi met with representatives from PowerCo, German chemical company BASF and French mining company Eramet on April 16.
Indonesian investment minister Bahlil Lahadalia said PowerCo expressed interest in investing in the country’s EV battery ecosystem during the meeting. PowerCo plans to partner with Indonesia-based mining company Vale, Ford and China-based material processor Huayou, according to Bahlil.
He added that PowerCo will also work with French miner Eramet and Indonesian Merdeka Gold Copper and Kalla Group.
Jakarta Globe reported that Bahlil did not reveal how much Volkswagen will invest in the battery ecosystem through PowerCo. The minister said the cooperation will encompass joint venture investment and raw material supplies.
According to Reuters, Volkswagen said it is in a positive exchange with the Indonesian government and suppliers. It added that the country is important in terms of raw materials.
BASF also intends to gain a presence in Indonesia. Bahlil said BASF plans to invest US$2.6 billion with Eramet in battery precursor production facilities running on green energy in North Maluku. He said the construction is expected to begin in late 2023.
BASF told Reuters that it is assessing the development of a nickel and cobalt hydrometallurgical refining complex with Eramet, which was announced in 2020.
Indonesia is trying to lure EV investment to the country, especially with its rich nickel resources. In March, Ford announced a US$4.51 billion battery material investment in Indonesia, the first one the carmaker has ever done in Southeast Asia. The project, joined by Vale and Huayou, will produce 120 kilotons of mixed hydroxide precipitate (MHP) production annually.
Keyword: Volkswagen and Ford to invest in Indonesian EV battery ecosystem with international partners