The honorable President of Indonesia, Joko Widodo, recently fulfilled his three-day trip to Australia to discuss significant matters with Prime Minister Anthony Albanese.
His visit to the foreign country had been fruitful, as the two country leaders were able to negotiate economic partnerships that involved electric vehicle batteries, extended business visas, and green economy investments. Apart from these, they have also voiced their dedication to maintaining regional peace and security.
The partnership got BMI Head of Commodities Analysis Sabrin Chowdhury’s attention, saying that these two global mining industry leaders have formed a “win-win” EV battery partnership.
Intensified economic partnership
The Australia-Indonesia Annual Leaders’ Meeting in Sydney on July 4 witnessed the two major economies form “new commercial deals” related to health, mining, and digital economy sectors.
″[Indonesia] has a major aim to develop its EV manufacturing industry. And they really need lithium for that. Lithium and nickel together they’re very important parts of EV batteries. So definitely, it is a win-win.”
Sabrin Chowdhury, BMI Head of Commodities Analysis (via CNBC)
It is worth noting that Australian exports to Indonesia reached a whopping $14.6 billion in 2022. The two countries also enjoyed consistent growth in bilateral investments for minerals and mineral processing.
All that considered, the Indonesian Chamber of Commerce and Industry and Western Australia took the opportunity to ink an Action Plan during the three-day Australian trip. The plan basically aims to strengthen the ties between the two economies, particularly in the critical mineral industry.
“The partnership between Indonesia and Western Australia can open up great opportunities in the critical minerals sector. Australia will become a lithium supplier and Indonesia will become a nickel supplier, both of which are the main components in EV production.”
Siswo Pramono, Indonesian ambassador to Canberra
This partnership will undoubtedly be a game changer in the global EV industry. For context, Australia is recognized as the world’s top lithium supplier, while Indonesia has the largest nickel reserves.
As EV adoption continues to gain traction, nickel demand has also been on the rise.
“The price outlook is very strong over the longer term so this will definitely benefit Indonesia.”
Siswo Pramono, Indonesian ambassador to Canberra
In addition, the two economies also entered into a more intensified climate and infrastructure partnership. Prime Minister Anthony Albanese even allocated 50 million Australian dollars ($33 million) aimed at encouraging investments from private climate finance into Southeast Asia’s largest economy.
See Also:
- The cheapest electric cars in the key markets across the world as of 2023
- Top Nickel producing countries and companies
- Global supply shortage looms for EV Demand, lithium producers forecast
- Lithium costs rebounded as electric vehicle demand
- China: Lithium prices suffered the largest decline in 2023
Australia and Indonesia are now set to solidify their positions in the global electric vehicle industry with the newly formed EV battery partnership. It also marks a major step toward the two countries’ wider economic partnership, leveraging their abundant critical mineral reserves.
