Indonesia to tap nickel laterite, make batteries to become EV hub

Reuters reported that Indonesia plans to start processing its rich supplies of nickel laterite ore for use in lithium batteries on the way to becoming a global hub for producing and exporting electric vehicles to Asia and beyond. Southeast Asia’s biggest economy is hoping a USD 4 billion Chinese-led project to produce battery-grade nickel chemicals will pay dividends by helping to attract EV production into the country. Indonesia last month announced plans to introduce a fiscal scheme that will offer tax cuts to EV battery producers and automakers Indonesia last month announced plans to introduce a fiscal scheme that will offer tax cuts to EV battery producers and automakers. Coordinating Maritime Minister Luhut Pandjaitan said in an interview that „We have to be a global player, in which he mapped out a broader strategy to go beyond simply exporting batteries or battery chemicals.” Indonesia, the second-largest car production hub in Southeast Asia after Thailand, last month announced plans to introduce a fiscal scheme that will offer tax cuts to EV battery producers and automakers, as well as preferential tariff agreements with other countries that have a high EV demand. Mr Pandjaitan, who also oversees energy, mining and transportation said that „Of course, maybe we can export these batteries … But then, if you build a factory here you can also supply batteries to cars produced in Indonesia. Our strategy is we can export (EVs) to Australia because we have a trade agreement, and also to ASEAN (Association of Southeast Asian Nations) and domestically.” Indonesia and Australia are expected to sign a long-awaited free trade agreement next month. Industry Minister Airlangga Hartarto told a briefing to foreign correspondents on Feb. 13 that Indonesia aimed for 20 percent of vehicle production in the country to be EVs by 2025, representing 400,000 vehicles. He said investment in EV production was expected from companies in South Korea, Japan, China and Europe. The deputy minister for industry, Harjanto, also said last December that Hyundai Motor Co, the world’s No.5 automaker, plans to start producing EVs in Indonesia as part of an USD 880 million auto investment in the country.