Indonesia’s mining and electric vehicle (EV) battery sectors will receive a $9 billion boost from a British consortium, which will include mining giant Glencore, the resource-rich country’s top minister said on Wednesday.
Home to the world’s biggest nickel reserves, Indonesia has been working to lure a host of multinational firms as it looks to capitalise on rising demand for batteries and EVs.
“The investment is about $9 billion if it is according to plans,” the country’s Investment Minister Bahlil Lahadalia told reporters.
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The ministry confirmed the British consortium included firms such as Glencore, Indonesian state miner Aneka Tambang, materials company Umicore and energy company Envision Group.
Lahadalia did not provide a breakdown of the $9 billion but said it would go into an industrial park in the Bantaeng region on Sulawesi island powered by wind energy, with a completion target of September.
“If we can speed it up we’ll do it,” Lahadalia added.
Toto Nugroho, chief executive of state battery company Indonesia Battery Corporation, said the investment was expected to help the country enter the British and European markets.
Indonesia’s government has banned exports of unprocessed nickel ore since 2020 to ensure supply for existing and potential investors.
At the same time, the country is keen to develop downstream industries with the ultimate aim of producing batteries and vehicles for the world’s biggest electric car manufacturers, including Tesla and BYD.
- Reuters, with additional editing by Vishakha Saxena
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