- Volkswagen, Vale, Ford, and Huayou join forces for EV battery ecosystem
- BASF eyes $2.6 billion investment in battery materials plant
- Indonesia's commitment to environmental standards plays key role
Volkswagen is teaming up with some big names to create an electric vehicle (EV) battery ecosystem in Indonesia. Picture this: Volkswagen, Vale, Ford, and China's Zhejiang Huayou Cobalt, all coming together to take advantage of Indonesia's bounty of raw materials for EV batteries. These bad boys make up about 40% of an EV's price tag, so cutting costs and catching up with Tesla is the name of the game.
Our buddy Bahlil Lahadalia, Indonesia's investment minister, spilled the beans on Sunday. He said that these major players will be joining forces with Eramet, Merdeka Gold Copper, and Kalla Group. The endgame? Joint ventures and a steady supply of raw materials for those sweet, sweet EV batteries.
Now, you might be wondering why Indonesia is getting all this love. Simple: it's a goldmine for raw materials, and Volkswagen is stoked to work with the government and suppliers. But that's not all - BASF has also shown interest in building a battery materials plant in Indonesia, partnering with Eramet for a cool $2.6 billion investment.
Indonesia is doing its part to make sure they're playing by the rules. President Joko Widodo (aka Jokowi) says they'll be improving monitoring of environmental standards for nickel mining. Nobody wants to spoil the fun by wrecking the planet, right?
Last month, Ford invested in Indonesia for the first time by joining forces with Vale Indonesia and Huayou in a $4.5 billion nickel processing plant. Volkswagen's also throwing down some serious cash, announcing a whopping 180 billion euros ($193 billion) investment over five years in battery production and raw material sourcing. The future's looking electric, and Indonesia's ready to ride the wave.
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