Indonesia wants to take over battery production

Brussels, Jakarta Emerging markets want to be booming participate more in the market for e-car batteries. For example, the President of Indonesia, Joko Widodo, is offering German car companies nickel mining concessions if they settle in his country.

“If we work together with Germany, we can build a large ecosystem and cover the entire supply chain: from the nickel smelting plants to battery production to the finished car,” said Widodo in an interview with the Handelsblatt.

Nickel is a crucial raw material for battery production and is also mined in Russia. Since the attack on Ukraine, the price has risen sharply.

Indonesia wants to build numerous battery factories

In order to attract investment, Indonesia relies on restrictions on the export of raw materials. Since the beginning of 2020, the country has had an export ban on nickel ore in order to bring more added value into the country for further processing – probably in breach of the rules of the World Trade Organization WTO.