LG has signed an enormous deal under which it would reportedly invest nearly $10 billion in Indonesia to provide batteries within the country.
Indonesia is certainly one of the world’s largest nickel producers, but it surely also recently introduced a ban on the export of nickel ore to encourage the industry to process it locally.
The latest protectionist move has resulted in great interest in investing in battery production within the country from firms corresponding to Tesla is currently evaluating the potential investment.
According to reports, due to this move, the country managed to catch its first large fish and even a whale.
The Indonesian government announced today that LG Energy Solution, the brand new battery unit of LG Group that spun off from LG Chem this month, has signed a memorandum of understanding for a $9.8 billion deal to provide electric vehicle batteries within the country.
Bahlil Lahadalia, head of the Indonesian Investment Coordination Board, said today (via Reuters):
“We have signed a Memorandum of Understanding to build an integrated electric battery factory from upstream to downstream. “In Indonesia, mines, steelworks, precursors, cathodes, cars for recycling plants will be built.”
LG confirmed that it had signed an MoU in Indonesia, without confirming the worth.
More recently, Tesla CEO Elon Musk appealed to mining firms to extend nickel production as these resources grow to be increasingly necessary for increasing production of electrical vehicle batteries.
Source: Elektrek
