On Thursday, the Indonesian and Australian governments signed a memorandum of understanding (MoU) to establish a bilateral mechanism aimed at advancing their collaboration in the electric vehicle (EV) industry. The agreement, signed in Jakarta by Indonesian ad interim Coordinating Minister for Maritime Affairs and Investment Erick Thohir and Australian Minister for Industry and Science Ed Husic, signifies the commitment of both nations to become key players in the global electric vehicle supply chain.

 

Thohir highlighted the close geopolitical ties between Indonesia and Australia, emphasizing their abundant mineral resources that contribute to the potential success of their collaboration in the EV industry. The MoU follows a commitment announced by the Indonesian president and the Australian prime minister at the Annual Leaders' Meeting.

 

The bilateral mechanism aims to foster mutually beneficial cooperation, map the EV supply chain and ecosystem, and share best practices regarding environmental, social, and governance standards. It will facilitate knowledge transfer, establish new business partnerships, and form a joint steering committee to guide workflow and monitor collaboration results.

 

Thohir emphasized the significance of nickel and lithium, essential minerals for EV batteries, and highlighted Indonesia's progress in developing the nickel downstreaming industry over the past five years. With three operating factories producing mixed hydroxide precipitate, a key material for battery precursors, Indonesia anticipates several battery manufacturing projects in the coming years.

 

The minister expressed optimism that the MoU would serve as a milestone for genuine collaboration in achieving their shared ambition in the electric vehicle industry.