Indonesia is in the final stages of entering into agreements with Tesla Inc. of the USA and BYD Group of China to invest in electric vehicle (EV) manufacturing facilities.
Indonesia is a country in Southeast Asia. The country is situated between the Pacific and the Indian Ocean. It has over 17,000 islands, which include Sumatra, Java, and parts of Borneo and New Guinea.
Indonesia is promoting investment into batteries and EVs in the country to take advantage of nickel resources which are abundantly available in the country. Indonesia is a major nickel ore exporter. However, the country has put a ban on exports of Nickle to ensure that raw materials are available for investors. Nickle is required for stainless steel and battery manufacturing.
All big brands in the EV ecosystem including BYD, Tesla and Hyundai, etc are expected to invest in Indonesia for developing EV and Battery manufacturing ecosystem. Many are finalizing deals with Indonesia.
It is good to add that South Korean carmaker Hyundai has launched a manufacturing unit in Indonesia in March 2022. This unit is to produce the first locally assembled EV in Indonesia.
SGMW Motor of Indonesia is a part of a joint venture of SAIC Motor Corp Ltd, General Motors Co, and Wuling Motors Holdings. SGMW Motor has built assembly facilities in Indonesia.
An investment of $30 billion is expected by Indonesia in battery and electric vehicle manufacturing by 2026.