Volkswagen, Ford, and Vale Indonesia To Collaborate on EV Battery Ecosystem

Volkswagen plans to establish an electric vehicle (EV) battery ecosystem in Indonesia with the aim of improving the market. The German automaker will collaborate with mining company Vale, American automaker Ford, and China’s battery minerals producer Zhejiang Huayou Cobalt, according to the Investment Minister of Indonesia.

The Indonesian Minister of Investment, Bahlil Lahadalia, stated in a video announcement that the partnership would involve joint ventures or the supply of raw materials. As of now, Volkswagen, Ford, Eramet, Merdeka Battery, Kalla Group, and Merdeka Gold Copper have not provided any comments in response to requests about EV. PT Vale Indonesia declined to comment on the matter. 

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Many car manufacturers are actively seeking favor with Indonesia, due to its abundant raw materials used in the production of electric vehicle (EV) batteries. These materials make up approximately 40% of the total cost of a vehicle. The automakers are targeting Indonesia to further reduce costs and catch up with the leading EV market player, Tesla.

Indonesia, known for having the largest nickel reserves globally, has been actively working towards developing downstream industries for this metal, with the ultimate goal of producing batteries and electric vehicles (EVs). Recently, Ford made its first investment in Indonesia by partnering with Vale Indonesia and Huayou in a $4.5 billion nickel processing plant located in Pomalaa, Southeast Sulawesi, where Vale operates a nickel mine.

Source : CNA

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