In an effort to establish a robust electric vehicle (EV) industry, the Indonesian Government plans to negotiate a new agreement with Australia to acquire an additional 60,000 tonnes of lithium annually, according to The Jakarta Post.
This potential expansion would effectively double the existing pact between Jakarta and Canberra - taking the total tonnage to 120,000 tonnes of lithium annually.
“We have already imported 60,000 tonnes of lithium and the smelting process will begin in Morowali, probably early next year," said maritime affairs and investment minister Luhut Pandjaitan.
“We asked them if we could import another 60,000 tonnes with their participation.”
Indonesia, known for possessing the world’s largest nickel reserves, considers this collaboration vital as it aspires to become a prominent global hub for EV production.
However, the country lacks a domestic supply of lithium, a crucial component for EV batteries – which neighbouring Australia is the world’s largest supplier.
Forging stronger partnerships
Earlier this month, Indonesian President Joko Widodo embarked on a three-day state visit to Australia, where he held a meeting with his Australian counterpart, Prime Minister Anthony Albanese.
During the visit, the Indonesian Chamber of Commerce and Industry and Western Australia signed an 'Action Plan', solidifying their commitment to closer collaboration in the critical minerals sector.
“The partnership between Indonesia and Western Australia can open up great opportunities in the critical minerals sector,” emphasized Siswo Pramono, the Indonesian ambassador to Canberra, highlighting the significance of this cooperation.
Pramono further elaborated on the potential outcomes, stating: “Australia will become a lithium supplier and Indonesia will become a nickel supplier, both of which are the main components in EV production.”
This statement underscores the strategic nature of the partnership, aligning the strengths and resources of both countries in support of electric vehicle manufacturing.
The signing of the action plan is a significant step towards fostering mutual involvement and cooperation in the critical minerals industry, ultimately contributing to the growth and advancement of the electric vehicle sector.