Indonesia, Australia Team Up to Develop Electric Vehicle and the Battery Ecosystem

TEMPO.CO, Jakarta - The governments of Indonesia and Australia joined hands to develop electric vehicles, or EVs, by signing a memorandum of understanding on Thursday, Nov. 23, in an effort to overcome pollution. The MoU was signed by Ad Interim Coordinating Minister for Maritime Affairs and Fisheries Erick Thohir and Minister for Industry and Science Ed Husic.

“Given the air pollution situation that we are seeing now, the government has taken a position that we need to continue to encourage the development of EVs,” he said on Thursday.

According to the minister, Australia holds 24 percent of the world's lithium reserves and contributed 43 percent of global lithium extraction in 2022.

Erick, who also serves as SOE Minister, said that Australia could benefit from its abundant lithium resources by collaborating with Indonesia to build a new axis for the EV battery ecosystem and establishing alliances.

Indonesia has also developed the nickel downstream industry over the last five years, opening three factories to produce mixed hydroxide precipitate, which is the raw material for battery precursors.

“In addition, [the Indonesian government] planned to build several battery manufacturing projects in the upcoming few years,” Erick added.

He believed that since Indonesia has a large market for electric vehicles, working with Australia would create new job opportunities for both countries and boost economic growth. Erick also promised that the Indonesian government would draw up a roadmap to implement this cooperation within the next month.

DICKY KURNIAWAN | RIRI RAHAYU

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