Maintain The Sustainability Of The Global Electric Vehicle Industry, Indonesian Chamber Of Commerce And Industry And The Government Of Western Australia In A Critical Mineral Partnership

Photo: Doc. Kadin Indonesia

JAKARTA - The Government of Western Australia and the Indonesian Chamber of Commerce and Industry (Kadin) have signed a Memorandum of Understanding (MoU) to explore partnership opportunities in critical minerals for the rapidly growing battery and electric vehicle (EV) industry. The signing of the MoU was carried out today, Tuesday, February 21 in Perth, Western Australia, as a follow-up to the commitments made during B20/G20 in November 2022.

The rapidly growing battery and electric vehicle (EV) industry is driven by increased attention to climate change, new transportation technology, and renewable energy. The partnership between Western Australia and Indonesia could open up major opportunities in this sector.

Both countries have abundant mineral wealth to produce highly sought-after EV batteries. Australia is the main supplier of lithium, and Indonesia is the world's largest producer for nickel, which is a vital component of EV batteries. The two countries have quite important mineral reserves for battery production, with the potential to complement each other to create mutually beneficial cooperation.

According to Arsjad Rasjid, Chairman of the Indonesian Chamber of Commerce and Industry, the synergy between the two countries in developing the battery industry will increase Indonesia's competitiveness in the global market and create new jobs for the Indonesian people.

"We must take advantage of this opportunity to jointly develop a battery manufacturing plant in Indonesia by utilizing lithium Australia and profitable investments, so as to realize the potential of Indonesia's nickel reserves and abundant labor," said Arsjad.

"The strategic partnership between Kadin Indonesia and the Government of Western Australia is an important milestone in realizing the ambition to build a major production center or power in the electric vehicle industry. We are excited to work with the Government of Western Australia to achieve common goals and explore opportunities for the development of critical mineral and battery industries that have added value," added Arsjad.

This MoU includes efforts to promote investment and cooperation for the common interests of Western Australia and Indonesia, especially in optimizing opportunities to develop critical minerals and a high added value battery industry. Western Australia and Indonesia have a history of cooperation in the resource sector, with several Indonesian mining companies operating in Western Australia and Western Australian companies investing in the Indonesian mining sector.

In this collaboration, Kadin Indonesia and the Government of Western Australia will establish industrial partnerships in critical mineral supply chains in both regions, as well as share information about legal or regulatory updates. This MoU is expected to accelerate cooperation and stimulate the development of the global battery and EV industry.