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Germany’s BASF, VW mull investment in Indonesia's battery industry
The announcements from the German manufacturers come after the investment minister hit the road to seek FDI into a key link of the electric vehicle supply chain.
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Indonesian Investment Minister Bahlil Lahadalia (second from right) meets with Markus Kamieth of BASF (third from left) in Frankfurt on Oct. 9, 2021, to discuss the German chemical company's planned investment in nickel and cobalt processing facilities in Indonesia. (Investment Ministry/-)
O
n a roadshow in Europe, the government has secured interest from a major carmaker and the world’s largest chemical producer to invest in Indonesia’s nickel and cobalt industries, which will supply materials for electric vehicle (EV) batteries.
In Germany, Indonesian Investment Minister Bahlil Lahadalia met with representatives of carmaker Volkswagen (VW) in Wolfsburg and from BASF in Frankfurt.
The Investment Ministry reported Monday that VW was interested in investing in the country’s nickel industry and in learning how it could source materials from the country for its battery plants in Europe in the future.
Read also: Hyundai Motor, LG Energy Solution start work on SE Asia’s first EV battery plant
BASF, meanwhile, is looking to team up with Paris-based mining firm Eramet to extract and process nickel and cobalt in Central Halmahera, North Maluku. The envisioned plant was estimated to have an annual production capacity of 42,000 metric tons of nickel and 5,000 metric tons of cobalt. The investment plan also includes the development of a base metal refinery.
“I want to have many players in the battery industry and [the manufacture of] electric cars in Indonesia, so that these industries grow rapidly, consumers have many options and prices become competitive,” Bahlil was quoted in a press release as saying.
The government has been trying to lure foreign direct investment (FDI) to develop the country’s EV battery industry, banking on the country’s nickel reserves, which top those of other countries.
