Indonesia signed a memorandum of understanding (MOU) with LG Chem's LG Energy Solutions on December 18 to invest $9.8 billion in electric vehicle batteries, Bahlil Lahadalia, head of Indonesia's investment coordination Board, said at a press conference.
An official at LG Energy Solutions confirmed the fact to Reuters but could not provide details or the amount of the deal.
According to Bahlil, according to the mou, at least 70 percent of the nickel mines LG Energy Solutions uses to produce batteries for electric cars must be processed in Indonesia.
He said the agreement would make Indonesia the first country to successfully integrate the battery industry.
"We signed a memorandum of understanding to build integrated battery plants upstream to downstream.
Everything from mines, smelters, precursors, positive poles, cars (manufacturing) to recycling facilities will be built in Indonesia."
The project will be built in Indonesia's North Maluku province and central Java island, he said.
With nickel and cobalt high in the battery industry, Indonesia, rich in nickel, has long been a battleground.
Earlier, it was reported that Tesla would send a delegation to Indonesia in January to discuss potential investment in its electric vehicle supply chain.
Indonesia's Ministry of Ocean And Investment later said ningde Times, another global power battery leader, planned to invest $5 billion to build a lithium battery plant in Indonesia ($14.8 billion in total with LG Chem) and agreed to ensure that 60 percent of nickel is processed into batteries in Indonesia.
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