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.
▲ Source: Volkswagen
According to reports, this battery factory is part of Volkswagen’s plan to establish an electric vehicle supply chain in Indonesia. 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. It is learned that Indonesia has become one of the popular destinations for investment in the electric vehicle supply chain due to its rich resources of key raw materials for batteries such as nickel, copper and cobalt.
