Indonesia Taps Australian Lithium as China Builds EV Battery Plant

A rechargeable Lithium-ion battery. China’s EV in Southeast Asia: Is the region gaining value or just assembling? Bhima Yudhistira discusses how to up the value chain.
A rechargeable Lithium-ion battery. BMW CEO in South Africa says the country can collaborate with Europe to reduce dependence on China. Photo: Ronny Hartmann / AFP

Indonesia will soon begin importing lithium from Australia to address a critical shortage of this essential raw material needed for its rapidly expanding electric vehicle (EV) sector, according to Energy and Mineral Resources Minister Bahlil Lahadalia.

The decision highlights the country’s dual strategy: diversifying the sourcing of battery components internationally, while simultaneously strengthening domestic manufacturing capabilities through partnerships, including significant Chinese investments.

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by Edwin Shri Bimo

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