In a significant development South Korea has signed a memorandum of understanding (MOU) with a unit of South Korean giant LG Group for a battery investment deal valued at $9.8 billion electric vehicle (EV).
The deal, signed on December 18, includes investments across the EV supply chain, said Bahlil Lahadalia, LG’s board head.
The agreement made Indonesia the first country in the world to integrate the electric battery industry from mining to producing electric car lithium batteries, said Bahlil while adding, “We have signed an MOU for the construction of an integrated electric battery factory from upstream to downstream”.
“Mines, smelters, precursors, cathodes, cars to 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, at least 70% of the nickel ore used to produce the EV batteries must be processed in Indonesia,”
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, U.S. automaker Tesla said it will send delegations to Indonesia in January 2021 to discuss potential investment in a supply chain for its electric vehicles.