Volkswagen’s subsidiary PowerCo is reportedly seeking partnerships to build an ecosystem for electric vehicle batteries in Indonesia. The move is part of the company’s efforts to expand its EV production globally. PowerCo will work with companies such as Ford, Vale, Huayou Cobalt, Eramet, Merdeka Gold Copper, Merdeka Battery, and the Kalla Group to establish the ecosystem.
The partnership was announced by Indonesian Investment Minister Bahlil Lahadalia during his visit to Germany with Indonesian President Joko Widodo. According to Lahadalia, the investment will be made by PowerCo, but no further details have been provided.
See also: Volkswagen’s PowerCo Begins Construction on Second EV Battery Gigafactory in Spain
Given Indonesia’s abundance of nickel, a focus on the metal is expected. Ford had earlier announced investments in a nickel processing plant in Indonesia, along with Vale and Huayou Cobalt.
BASF, which has reportedly expressed interest in building a plant for the production of battery materials in Indonesia’s North Maluku province, could also be a part of the ecosystem. However, the talks between BASF and French mining company Eramet, which are in the final stages, have not yet been finalized.
Indonesia has been facing concerns about safety standards in its mines, especially as the country has the world’s largest nickel reserves. President Widodo had announced in March stricter monitoring of safety and environmental standards, and Minister Bahlil sees the interest of European companies as evidence that these concerns are being addressed.
The partnership between PowerCo and its partners is expected to bolster Indonesia’s position as a major player in the global EV market.
