Australia Offers To Help Indonesia As It Strives To Be A Global EV Hub

Western Australia says it wants to help Indonesia become a key player in electric vehicle (EV) manufacturing, particularly in components such as batteries, according to Jakarta Globe.
In July, CNBC reported that Australia and Indonesia had signed a "win-win" EV battery deal in which Australia would become a lithium supplier and Indonesia would become a nickel supplier, both of which are key components in EV production.

According to Western Australian Premier Roger Cook, this partnership will likely see some progress over the next year.

“We are expecting that over the next 12 months to see those letters of intent to lead to strong contracts,” Cook told reporters on the sidelines of the 2023 ASEAN Business and Investment Summit (ABIS) in Jakarta on Sunday.

“We know how Indonesia wants to play a key role in the development of EVs and its other components. Western Australia wants to be part of that supply chain. So we can continue to assist our Indonesian partners to be leaders in EV manufacturing,” Cook said.

Indonesia has set an ambitious target for its vehicle industry in accordance with its commitment to the Paris Agreement. It aims to have at least 20% of its vehicles be electric by 2025. This equates to approximately 400,000 vehicles.

This transition is being driven by Indonesian government programmes such as low-cost green car incentives and low-carbon-emission vehicle regulations.

The majority of Indonesian vehicles are produced through joint ventures with foreign manufacturers. Indonesia formed joint ventures with Hyundai of Korea and SGMW of China to produce electric vehicles.

By 2040, Indonesia hopes to be one of the top five producers of electric vehicle batteries in the world. To do so, it must gain access to other minerals, including lithium.
According to a 2023 US Geological Survey report, Indonesia and Australia have the world's largest nickel reserves, with 21 million metric tonnes each. In 2022, Indonesia's nickel mines produced 1.6 million metric tonnes, while Australia produced 160,000 metric tonnes of the silvery-white metal.

Western Australia produces half of the world's lithium. It also exports a lot of nickel, cobalt, manganese, and rare earths. Western Australia supplied all of the country's lithium production in 2021. According to the 2023 US Geological Survey data, Australia's lithium reserves totaled 6.2 million metric tonnes. Lithium production in Australia increased from 55,300 metric tonnes in 2021 to 61,000 metric tonnes the following year.

Lithium and nickel are pivotal to EV battery production.

According to a 2023 US Geological Survey report, Indonesia and Australia have the world's largest nickel reserves, with 21 million metric tonnes each. In 2022, Indonesia's nickel mines produced 1.6 million metric tonnes, while Australia produced 160,000 metric tonnes of the silvery-white metal.
Western Australia produces half of the world's lithium. It also exports a lot of nickel, cobalt, manganese, and rare earths. Western Australia supplied all of the country's lithium production in 2021.
According to the 2023 US Geological Survey data, Australia's lithium reserves totaled 6.2 million metric tonnes. Lithium production in Australia increased from 55,300 metric tonnes in 2021 to 61,000 metric tonnes the following year.