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Indonesia wants to double lithium pact with Australia to 120,000 tonnes
The government plans to secure an additional 60,000 tonnes of lithium per year under an import agreement with Australia as it strives for a comprehensive electric vehicle (EV) industry.
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A worker looks at a pile of nickel pig iron (NPI) produced in the Morowali industrial park in Bahodopi district, Morowali regency, Central Sulawesi, in this undated photo.
T
he government is planning to coax an additional 60,000 tonnes of lithium per year from Australia as it strives to build a comprehensive electric vehicle (EV) industry. If agreed, the additional quota would double an earlier deal between Jakarta and Canberra.
Indonesia holds the world’s largest nickel reserves, which is a strong selling point for a country striving to become a global EV production hub, but it lacks domestic supplies of lithium, a material deemed equally important for EV batteries.
Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said the government hoped to increase lithium imports from Australia and become a battery production base for the Southeast Asia region and possibly the world.
Read also: Indonesia-Australia ties ‘shift up another gear’ at Sydney summit
“Previously, we’ve discussed the import of 60,000 tonnes of lithium, which will be processed in Morowali starting next year. In yesterday’s meeting, I asked for another 60,000 tonnes, and I [suggested] that Australia participate in [some] equity [investment],” he said in an interview with CNBC Indonesia on Monday.
He was referring to a meeting between President Joko “Jokowi” Widodo and Australian Prime Minister Anthony Albanese that took place on July 4.
He went on to say that, under such a scheme, the lithium smelter project would be jointly owned by Indonesia and Australia. “They responded positively to the idea,” he said.
