Indonesian Foreign Minister-Australia Discusses Energy Transition Cooperation Including Electric Vehicle Battery Ecosystem

JAKARTA - Foreign Minister Retno Marsudi discussed energy transition cooperation in a bilateral meeting with Australian Foreign Minister Penny Wong.

The meeting was held on the sidelines of the ASEAN-Australia Special Summit which took place in Melbourne, on March 4-6, 2024.

"In a bilateral meeting with Australian Foreign Minister Penny Wong, I discussed various things, including energy transition cooperation, including the development of an EV battery ecosystem (electric vehicle)," said Retno as quoted by ANTARA, Wednesday, March 6.

In addition, Retno also emphasized the importance of the governments of the two countries lifting non-raterage barriers in Indonesia-Australia trade relations.

"In this case, I also convey the importance of cooperation in biosecurity, especially for fish and fruit products," said Retno.

Previously in a bilateral meeting with Australian Prime Minister Anthony Albanese, Indonesian President Joko Widodo (Jokowi) urged the memorandum of understanding (MoU) regarding cooperation in developing the electric vehicle ecosystem that was signed by the two countries in November last year to be realized immediately.

He considered the implementation of the MoU to be important in order to strengthen the cooperation of critical mineral supply chains and electric vehicles.

"Regarding nickel, the President encourages collaboration between the two countries in dealing with the global market situation," said Retno.

Indonesia and Australia are both known to have natural resources that can be synergized, namely critical minerals used in electric vehicle batteries.

In the last five years, Indonesia has developed its nickel downstream industry towards the electric vehicle ecosystem.

According to SOE Minister Erick Thohir, there are already three factories in Indonesia that operate to produce mixed hydroxide precipitate, namely the basic ingredients for battery precursors.

In addition, several battery manufacturing projects have also been planned to begin in the coming years.

Meanwhile, Australia has 24 percent of the world's lithium reserves which are second-placed after Chile.

Australia even accounts for 43 percent of global lithium extraction by 2022.

Australia can take advantage of this abundant lithium resource by collaborating with Indonesia which has developed its nickel industry in building a new axis of the electric vehicle battery ecosystem, as well as establishing alliances.