In a move to bolster their economic ties and advance the electric vehicle (EV) industry, the governments of South Korea and Indonesia have reaffirmed their commitment to joint investments in EV and battery production in Indonesia. A particular focus will be placed on strengthening the supply chain for crucial battery materials, such as nickel.
According to an official statement by the South Korean Ministry of Trade, Industry, and Energy, both countries have reached an agreement to intensify their collaboration on various aspects of the burgeoning EV market. Although specific financial figures were not disclosed in the released document, the pledge to further develop Indonesia’s e-mobility and battery sector highlights the significance of this bilateral partnership.
Among the key areas of focus, both nations have expressed a keen interest in the promising market for electric two-wheelers in Indonesia. As part of this initiative, the scope of cooperation is set to expand to include investments in battery recycling and the establishment of a specialized plant for manufacturing electric drives dedicated to two-wheelers.
The delegates from South Korea and Indonesia, during their opening speeches at a high-level delegation meeting in Seoul, emphasized the longstanding half-century economic partnership between the two countries in the Indo-Pacific region. They mutually stressed the urgency of addressing new measures to fortify supply chains and take action in the fight against climate change.
Indonesia’s strategic position as the possessor of the world’s largest nickel reserves makes it an attractive destination for international investors. To develop its own nickel industry, the country took the initiative to ban the export of unprocessed nickel ore in 2020. Key players in the industry, including BASF, Eramet, SK On, CATL, and LG, have shown interest in Indonesian nickel deposits, further underscoring the nation’s potential in the global EV market.
Notably, various international automakers are also actively venturing into Indonesia. Ford recently announced plans to invest in a nickel processing plant in Southeast Sulawesi’s Pomalaa region, where Vale, together with PT Vale Indonesia and the Chinese company Huayou Cobalt, operates a nickel mine. Meanwhile, the Volkswagen Group is gearing up to establish a local battery factory for electric cars through its subsidiary PowerCo, with an estimated investment of around 4.7 billion euros, as reported by Indonesian Ministry of Investment Secretary Ikmal Lukma.
