The Government of Western Australia and the Indonesian Chamber of Commerce and Industry (KADIN) have signed a Memorandum of Understanding (MoU) to explore partnership opportunities in critical minerals for the booming battery and electric vehicle (EV) industry.
The MoU was signed on February 21 in Perth, Western Australia, as a follow-up to the commitment made during B20/G20 last November 2022.
This partnership between Western Australia and Indonesia could unlock substantial opportunities in this sector, given the countries’ abundant reserves of rich minerals to produce highly sought-after EV batteries, with Australia a major supplier of Lithium and Indonesia the world’s leading producer of nickel, which are vital components in EV batteries.
“We should capitalise on this opportunity to jointly develop a world-class battery manufacturing factory in Indonesia utilizing Australian lithium and investments (with lucrative returns, of course) to realise the potential of Indonesia’s nickel reserves and plentiful workforce. Together, we can supply the world with our jointly manufactured batteries.” Arsjad Rasjid stated.
Under the MoU, KADIN and the Western Australian Government will establish industry partnership in the critical minerals supply chains in both regions and share information on legislative or regulatory updates. The MoU is expected to accelerate cooperation and stimulate the development of the industry to support the global battery and EV sector. The MoU also reflects the two countries’ commitment to promoting investment and cooperation for the mutual benefit of Western Australia and Indonesia.
“This strategic partnership between KADIN and the Western Australian Government is a milestone in building a “powerhouse” or a “Joint Production” hub of EV, aiming to achieve shared objectives and explore opportunities to develop value-added critical mineral and battery industries”. added by Arsjad.
KADIN is committed to working collaboratively with Western Australia to maximise investment and trading opportunities in critical minerals and battery industries, and this MoU is a crucial step towards building a strong, sustainable, and mutually beneficial partnership between the two countries.
Both Western Australia and Indonesia have a history of collaboration in the resources sector, with several Indonesian mining companies operating in Western Australia and Western Australian companies investing in the Indonesian mining sector. The MoU further strengthens the long-standing economic and cultural ties between Western Australia and Indonesia, with both nations committed to enhancing mutual interests in various sectors.