VW To Build EV Battery Ecosystem In Indonesia

Volkswagen automakers announces it will construct a battery ecosystem in Indonesia. This also includes its partnership with miner Vale, Ford and China's battery minerals producer Zhejiang Huayou Cobalt, according to  the Southeast Asian country's investment minister.

As reported by Reuters, automakers are aware of Indonesia raw materials that are being used to produce EV batteries, which account for around 40 % of a vehicle’s sticker price, aiming to cut costs and close the gap on EV market leader Tesla. 

It further claims that Volkswagen, Europe's biggest automaker, will work with Vale, Ford, Huayou, French miner Eramet and several Indonesian firms like Merdeka Gold Copper, the parent company of Merdeka Battery, and energy firm Kalla Group, as stated by Minister Bahlil Lahadalia earlier on Sunday (April 16). 

Photo as illustation purpose - VW  battery system production factory in Hefei (credits to VW AG) 

"Indonesia is an important and interesting country in terms of raw materials and we are in a positive exchange with the government and suppliers," Volkswagen said in a statement.

Thus, Indonesia, the world's biggest nickel reserves seen as a major location due to its abundant raw materials, attracts automakers to invest in EV battery production. The country also has been trying to develop downstream industries for the metal which ultimately aim to produce batteries and EVs. 

The automaker also said last month that it plans to invest 180 billion euros (approximately RM880 billion) over five years in areas including battery production and raw material sourcing. According to another international source online, the investment will be made by VW’s battery subsidiary PowerCo, although details have not yet been disclosed.