Volkswagen to partner with Vale, Ford (F) and Huayou to build EV battery ecosystem in Indonesia
Indonesian investment minister Bahlil Lahadalia announced Sunday that Volkswagen will build an electric vehicle (EV) battery ecosystem in Indonesia and will partner with miner Vale, Ford and China's battery minerals producer Zhejiang Huayou Cobalt.
Minister Lahadalia said on Sunday that Volkswagen, Europe's biggest automaker, will work with Vale, Ford, Huayou, French miner Eramet and several Indonesian firms like Merdeka Gold Copper, the parent company of Merdeka Battery, and energy firm Kalla Group.
Automakers have been courting Indonesia for its raw materials used in producing EV batteries, which account for about 40% of a vehicle's sticker price, aiming to cut costs.
The partnerships would consist of joint ventures and supply raw materials, Bahlil said in a video statement.
"Indonesia is an important and interesting country in terms of raw materials and we are in a positive exchange with the government and suppliers," Volkswagen said in a statement.
Last month, Ford (NYSE: F) inked its first investment in Indonesia by joining Vale Indonesia and Huayou in a $4.5 billion nickel processing plant in Southeast Sulawesi.
Volkswagen last month said it plans to invest 180 billion euros ($193 billion) over five years in areas including battery production and raw material sourcing.
Shares of F are up 0.24% in pre-market trading on Monday.
By Michael Elkins | [email protected]