JAKARTA: Indonesia seeks to import lithium from Australia to fill a key gap in its electric vehicle (EV) battery supply chain, as part of its broader push to become a global EV manufacturing hub.
Energy and Mineral Resources Minister Bahlil Lahadalia said the government was also mulling over lithium shipments from several other countries, where some Indonesian companies are already engaged in lithium mining operations.
“So far, we import from African countries. It is expected to be way more economical to import from Australia, because the proximity will reduce the transportation costs,” he said, as quoted by Kumparan.
He added that the government did not yet have data on the planned lithium import volumes.
Previously, the energy ministry had instructed state-owned mining holding firm MIND ID to explore for lithium reserves in Australia’s northern territory.
Tri Winarno, the ministry’s coal and mineral mining director general, said the Indonesian government had signed an EV battery ecosystem development contract with the northern territory government in November last year.
The director general suggested that MIND ID proceed swiftly to establish a communication line to implement that bilateral partnership.
Indonesia’s battery strategy revolves around the production of nickel-manganese-cobalt (NMC) batteries, leveraging the country’s abundant nickel reserves to support domestic manufacturing by major players like LG Energy Solution and Hyundai.
Although NMC batteries are made using nickel, manganese and cobalt, they still need lithium to function.
Lithium serves as the core element enabling the movement of ions, making it critical to the energy storage process in all lithium-ion batteries, which includes NMC batteries as well as the alternative lithium-iron-phosphate (LFP) battery type.
At least two companies in Indonesia are currently producing or developing cathode material for LFP batteries: PT LBM Energi Baru Indonesia, which is also part of Jiangsu Lopal Tech, and PT Gotion Green Energy Solutions Indonesia. — The Jakarta Post/ANN
