Indonesia Will Import Lithium from Australia for EV Batteries

KatadataOTO – The Indonesian government continues to boost electrification in the country. One way is by importing lithium from abroad.

This is being done because the battery ecosystem for electric cars and motorcycles is part of the downstreaming initiative, which is a government priority program.

“One of the countries we will cooperate with is Australia. So far, we have been sourcing it from several countries in Africa,” said Bahlil Lahadalia, Minister of Energy and Mineral Resources (ESDM), as quoted by Antara on Tuesday (05/08).

According to Bahlil, there are several considerations for the government's plan to import lithium from the Land of Kangaroos. For example, the costs involved are lower.

Photo : Courtesy

Bahlil Lahadalia noted that if lithium is purchased from Australia, the shipping costs are not as high as from other countries.

Additionally, a number of Indonesian entrepreneurs are already mining lithium in Australia. So it is easier to obtain the commodity.

“I don't know the volume yet, because I'm not the business owner,” said the Minister of ESDM.

On the other hand, the Task Force for the Acceleration of Downstreaming and National Energy Security stated that Indonesia aims not just to be a market within the Electric Vehicle (EV) ecosystem.

But also to be involved in manufacturing electric cars comprehensively, starting with components made domestically.

Therefore, it is deemed necessary for Indonesia to import lithium from Australia as a raw material for EV batteries.

“At this stage, we are ensuring that there is at least one local Indonesian partner who can be a partner for technology transfer,” said Dimas Muhamad, Deputy Coordinator of the Task Force for the Acceleration of Downstreaming and National Energy Security.

This way, it is hoped that Indonesia will not just be a market for electric cars and motorcycles from foreign manufacturers.

CATL EV Factory to be Completed in 2026

As a reminder, the government has previously initiated the construction process of an EV battery factory in Karawang, West Java.

The production facility is a collaboration between Antam, IBC, CATL, and CBL. This EV battery factory is claimed to be capable of producing 5.9 gigawatt-hours (GWh) of batteries per year by 2026.

Photo : Carscoops

However, that number will increase to 15 GWh when fully operational in 2028, equivalent to 300,000 electric car units.

This large amount is expected to meet the needs of both domestic and international EV markets in the future.

The battery factory in Karawang stands on a 43-hectare plot of land and is operated by PT Contemporary Amperex Technology Indonesia Battery (CATIB).