LG has signed a massive agreement to reportedly invest close to $10 billion in Indonesia to make batteries in the country.
Indonesia is one of the world’s biggest nickel producers, but it has also recently put a ban on exporting nickel ore in order to encourage the industry to process it locally.
The new protectionist move has resulted in high interest to invest in battery production in the country with companies like Tesla currently evaluating a potential investment.
Now the country has reportedly landed its first big fish, or even whale, with this move.
The Indonesian government announced today that LG Energy Solution, the new battery production unit of LG Group that spun out of LG Chem this month, has signed a memorandum of understanding (MOU) on a $9.8 billion deal to make electric car batteries in the country.
Bahlil Lahadalia, the head of Indonesia’s Investment Coordinating Board, said today (via Reuters):
“We have signed an MOU for the construction of an integrated electric battery factory from upstream to downstream. Mines, smelters, precursors, cathodes, cars to recycling facilities will be built in Indonesia,”
LG confirmed that they signed a MOU in Indonesia without confirming the value.
Recently, Tesla CEO Elon Musk pleaded with mining companies to increase their nickel production as the resource is becoming increasingly critical in ramping up battery production for electric vehicles.
Source : Elektrek