- It added that the deal was signed on 18th December and includes investments across the EV supply chain, the board head, Bahlil Lahadalia, told a news conference
- Under the MOU, at least 70 per cent of the nickel ore used to produce the EV batteries must be processed in Indonesia
As per a report by Reuters, Indonesia and a unit of South Korean firm LG Group have signed a memorandum of understanding (MOU) on a $9.8 billion electric vehicle (EV) battery investment deal, the head of Indonesia’s Investment Coordinating Board has said. It added that the deal was signed on 18th December and includes investments across the EV supply chain, the board head, Bahlil Lahadalia, told a news conference.
The report added that an official at LG Energy Solution, a unit of LG Group confirmed it had agreed an MOU but could not provide details or the deal’s value. LG Group in Seoul referred Reuters to its affiliate.
Construction of an integrated electric battery factory from upstream to downstream
As per the report, Bahlil said the agreement made Indonesia the first country in the world to integrate the electric battery industry from mining to producing electric car lithium batteries. He added that they have signed an MOU for the construction of an integrated electric battery factory from upstream to downstream. He added that Mines, smelters, precursors, cathodes, cars to recycling facilities will be built in Indonesia. The project will be located in North Maluku and Central Java.
The report said that under the MOU, at least 70 per cent of the nickel ore used to produce the EV batteries must be processed in Indonesia, he added. Indonesia aims to start processing its 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.
