New reports suggest Korean chemical company, LG has signed a huge agreement to invest close to $10 billion in Indonesia to produce batteries in the country.
As one of the world’s biggest nickel suppliers, Indonesia made the decision to ban the exportation of the element in an attempt to boost its local processing. However, the decision resulted in high interest to invest battery production in the country leaving companies up in the air on whether or not to.
Tesla is allegedly already in talks with the Indonesian government to build a new nickel venture in the country and now, the country has reportedly landed a deal with Korea’s largest chemical company, LG Energy Solution.
In an announced today, the Indonesian government said that LG Energy Solution has signed a memorandum of understanding (MOU) on a $9.8 billion deal to make electric car batteries in the country. Head of Indonesia’s Investment Coordinating Board, Bahlil Lahadalia, commented on the announcement saying (via Reuters): “We have signed an MOU for the construction of an integrated electric battery factory from upstream to downstream. Mines, smelters, precursors, cathodes, cars to recycling facilities will be built in Indonesia,”
There was no confirmation on the value of the MOU, however, LG did confirm that they signed one.