Volkswagen Invests $5B in Indonesian Factory for Key Battery Materials
Battery Factory
On May 29th, according to Indonesian media Kumparan, Ikmal Lukman, secretary-general of the Indonesian Investment Coordinating Committee, said in an interview that Volkswagen will conduct a feasibility study on the battery factory project in the next few months.
According to reports, the battery factory is part of Volkswagen’s plan to establish an electric vehicle supply chain in Indonesia, and Volkswagen’s total investment in the battery factory is expected to reach US$5 billion.
Deal Street Asia quoted people familiar with the matter as saying that construction of the plant will start within this year. In this regard, Lukman said that the factory will meet the global demand for batteries.
In addition, Lukman also pointed out that the factory will also expand the scope of production to electric vehicles in the future.
According to reports, Volkswagen will cooperate with Vale, miner Huayou Cobalt and Ford Motor to establish a supply chain for electric vehicle batteries in Indonesia.
The investment cooperation will be led by Volkswagen’s PowerCo. Indonesia has become one of the popular destinations for electric vehicle supply chain investment due to its rich resources of key raw materials for batteries such as nickel, copper and cobalt.
Leave A Comment