Indonesia is keen to partner with Australia as it strives towards becoming a global electric battery and vehicle manufacturing hub.
Indonesia is known as the largest producer of nickel ore in the world, and as a result is currently banning exports of it.
Nickel is a key mineral needed to manufacture electric vehicle batteries. However, Indonesia requires other critical minerals that it doesn’t produce locally, such as lithium which Australia is one of the largest producers of.
As reported by the ABC, the Indonesian president will begin a three-day trip to Australia on today, with Prime Minister Anthony Albanese saying he is “delighted” to welcome Joko Widodo to Australia.
“As one of our closest neighbours, Australia is building extensive cooperation with Indonesia on climate, economic development, education and regional security issues,” Albanese said.
The first Australia-Indonesia lithium mining and processing venture is already being discussed, as the Indonesian Chamber of Commerce and Industry (KADIN) chairman Arsjad Rasjid told the ABC.
“Unfortunately, the negotiations are still in progress and the agreement wouldn’t be able to take place during the presidential visit,” Rasjid told the ABC.
Rasjid said KADIN will be signing an agreement with the Western Australia government, following a Memorandum of Understanding signed in February, which is expected to run for two years and aims to explore partnership opportunities in critical minerals and the electric vehicle industry.
“We should capitalise on this opportunity to jointly develop a world-class battery manufacturing factory in Indonesia utilising Australian lithium and investments (with lucrative returns, of course) to realise the potential of Indonesia’s nickel reserves and plentiful workforce,” Arsjad Rasjid said in February’s MoU announcement.
“Together, we can supply the world with our jointly manufactured batteries.”