Indonesia Plans Lithium Imports from Australia to Boost EV Battery Industry

Indonesia is set to begin importing lithium from Australia to support its rapidly growing electric vehicle (EV) battery industry, as the country lacks domestic lithium reserves despite having abundant supplies of nickel, cobalt, and manganese. The Indonesian government, led by Energy and Mineral Resources Minister Bahlil Lahadalia, sees Australia as a more economical source for lithium compared to previous imports from Africa due to lower transportation costs. This move aligns with Indonesia’s broader strategy to develop a comprehensive EV battery ecosystem and achieve net zero emissions by 2050-2060. The government has also engaged in partnerships with Australia, including contracts for EV battery ecosystem development and mining exploration, while simultaneously fostering domestic manufacturing with significant Chinese investments. Although the exact volume of lithium imports from Australia has not been finalized, Indonesia’s shift aims to ensure a stable and cost-effective supply chain for its EV ambitions. This collaboration with Australia is seen as a crucial step in strengthening Indonesia’s position in the global EV battery market.