Indonesia Taps Australian Lithium as China Builds EV Battery Plant

A rechargeable Lithium-ion battery. Indonesia will import lithium from Australia to supply its EV sector, as a Chinese-backed battery plant in Karawang prepares to open in 2026.
A rechargeable Lithium-ion battery. Indonesia will import lithium from Australia to supply its EV sector, as a Chinese-backed battery plant in Karawang prepares to open in 2026. 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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