The Indonesian government confirmed that it will import lithium from Australia to support the country’s fast-expanding electric vehicle (EV) industry. Speaking at the International Battery Summit conference held in Jakarta in early August, the country’s Energy and Mineral Resources Minister, Bahlil Lahadalia, said the country needs to step up imports of lithium to fulfill its ambition to become a major regional EV production hub.

Indonesia has set a production target of 9 million battery-powered motorcycles and 600,000 EVs by 2030, which it expects will help reduce the country’s annual consumption of fossil fuels by almost 22 million barrels.

The government is in the process of establishing a significant EV battery manufacturing industry, supported by leading overseas manufacturers such as China’s Contemporary Amperex Technology Company Ltd (CATL) and South Korea’s LG Energy Solution. It plans to establish a strong raw materials supply chain, underpinned by the country’s rich reserves of minerals such as nickel, manganese, and copper. However, the country has limited deposits of lithium, a key material used in EV batteries, forcing it to find new overseas suppliers.

Mr Bahlil confirmed at the summit: “Our vision to build an EV battery ecosystem is part of a broader mineral downstream industrialization strategy that we’ve pursued since 2020.” He confirmed that Indonesia had previously imported lithium from some African countries, but suggested that sourcing the mineral from Australia would be more cost-effective due to reduced shipping distances and higher volumes.