Volkswagen to Invest in Indonesia’s Electric Vehicle Battery Industry

German car giant Volkswagen via its battery subsidiary PowerCo, has expressed its interest to invest in Indonesia’s growing electric vehicle (EV) battery production ecosystem.

During his recent trip to Europe, Indonesian President Joko “Jokowi” Widodo met with several European firms, including Volkswagen.

The Indonesian Government’s investment Minister Bahlil Lahadalia, said Volkswagen through its battery subsidiary PowerCo, told Jokowi of its interest to invest in Indonesia’s EV battery ecosystem during a meeting in Hanover.

According to a number of Indonesian media reports, the German automaker could potentially partner with miner Vale, US automaker Ford, and Chinese cobalt refiner Zhejiang Huayou Cobalt, who recently agreed to work on a nickel processing project in Southeast Sulawesi.

Bahlil, however, did not disclose a timeline or how much Volkswagen was planning to invest in Indonesia’s EV battery sector.

The investment minister also revealed that German chemical conglomerate BASF plans to make a US$2.6 billion investment in an EV battery ecosystem in North Maluku in eastern Indonesia.

Minister Bahlil Lahadalia said BASF will join forces with  French multinational mining group Eramet, to build an EV battery ecosystem that runs on green energy, with the construction of the facility to start in late 2023.

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