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The
deal was signed on Dec. 18 and includes investments across the
EV supply chain, the board head, Bahlil Lahadalia, told a news
conference.
An official at LG Energy Solution, a unit of LG Group, South
Korea's fourth-largest conglomerate, confirmed it had agreed an
MOU but could not provide details or the deal's value. LG Group
in Seoul referred Reuters to its affiliate.
Bahlil said the agreement made Indonesia the first country in
the world to integrate the electric battery industry from mining
to producing electric car lithium batteries.
"We have signed an MOU for the construction of an integrated
electric battery factory from upstream to downstream," Bahlil
said.
"Mines, smelters, precursors, cathodes, cars to recycling
facilities will be built in Indonesia," he said, adding that the
project will be located in North Maluku and Central Java.
Under the MOU, at least 70% of the nickel ore used to produce
the EV batteries must be processed in Indonesia, he said.
Indonesia aims to start processing its rich supplies of nickel
laterite ore for use in lithium batteries as part of a bid to
eventually become a global hub for producing and exporting EVs.
Indonesia said earlier this month that U.S. automaker Tesla,
will send delegations to Indonesia in January to discuss
potential investment in a supply chain for its electric
vehicles.
(Reporting by Bernadette Christina Munthe and Heekyong Yang in
Seoul; Writing by Fathin Ungku; Editing by Martin Petty)
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