Volkswagen in Talks With Indonesia Government About EV Battery Raw Materials

By David Sachs and Cecilia Butini

German car maker Volkswagen AG is part of a group of companies talking with the Indonesian government about developing a supply chain in the country for electric-vehicle batteries, the Indonesian government said in a statement Monday.

The country's President Joko Widodo and investment minister Bahlil Lahadalia said they met with Volkswagen representatives, German chemical company BASF SE and French mining company Eramet SA to discuss an "EV battery ecosystem" investment in the country's North Maluku province.

The car maker said its battery company PowerCo is holding talks worldwide on raw-material hedging, including in the Southeast Asian country.

"At the moment, discussions are being further deepened--we will be happy to inform you about the results in due course," Volkswagen said in a statement. "Indonesia is an important and interesting country in terms of raw materials--we are in good contact with the government and suppliers."

BASF and Eramet confirmed they are studying the possibility of building a hydrometallurgical plant to produce battery-grade cobalt and nickel products in Indonesia, but neither has announced an investment. BASF didn't give a timeline for a possible investment, while Eramet said it would decide in the second half of this year.

Write to David Sachs at [e-mail] and to Cecilia Butini at [e-mail]

(END) Dow Jones Newswires

April 17, 2023 09:03 ET (13:03 GMT)

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