Indonesia and LG Group Sign Electric Vehicle Battery Investment Agreement
On Wednesday, local time, the head of Indonesia's Investment Coordinating Board stated that Indonesia and South Korea’s LG Group have signed a memorandum of understanding on a USD 9.8 billion electric vehicle battery investment agreement.
The chairman of the committee said that the agreement includes investment in the electric vehicle supply chain and was signed on December 18. LG will also cooperate with other companies including Hyundai Motor. Indonesia said that Hyundai Motor will produce electric vehicles locally in 2021.
Earlier this month, Indonesia’s Deputy Minister of Maritime Affairs and Investment stated that CATL plans to invest US$5 billion in Indonesia to build a lithium battery factory, which is expected to start production in 2024. According to reports, CATL has signed an agreement with Indonesian state-owned mining company PT Aneka Tambang, and the Indian side has also requested that 60% of the nickel is processed into batteries in Indonesia.
In October of this year, Reuters reported that Tesla was negotiating to build a new battery factory on the Indonesian island of Central Java in response to Indonesia’s rich nickel resources.
Subsequently, on December 12, the Indonesian government issued a statement stating that Tesla will formally send a delegation in January to discuss investment in the new energy vehicle supply chain with the Indonesian government. Musk said that as long as nickel mining is "efficient and environmentally friendly," he is willing to provide a "long-term huge contract."