The Indonesian Government has signed a memorandum of understanding (MoU) with South Korean firm LG Energy Solution for an electric vehicle (EV) battery investment deal worth $9.8bn, according to media reports citing the Indonesian Investment Coordinating Board.
The deal includes building an integrated EV lithium battery plant from upstream to downstream apart from investments across the EV supply chain.
The mines, smelters, precursors, cathodes, cars to recycling facilities required for the project will be built in the country. It will be located in North Maluku and Central Java regions.
As per the agreement, at least 70pc of the nickel ore used for the project to produce the EV batteries will be processed in Indonesia. The deal has made Indonesia the first country to mine and processing the nickel laterite ore and then produce lithium batteries used in EVs, the official said.