US President Joe Biden aims to meet with Indonesian President Joko Widodo this week and establish a partnership on electric car (EV) batteries. This meeting between the two countries will take place at a time when the nickel supply agreement is at the forefront. Well what does it mean?
The USA makes an agreement with Indonesia for uninterrupted raw materials for electric car batteries!
Indonesia plans to propose a limited free trade agreement to the United States for the supply of some minerals used in electric vehicle batteries. This also aims to enable companies in the electric vehicle battery supply chain in the country to benefit from tax credits under the US IRA Act (Inflation Reduction Act).
Indonesian Energy Minister Luhut Pandjaitan said on Monday that there is no free trade agreement between their countries yet and that they are proposing a limited free trade agreement. He also stated that they will meet with Ford and Tesla executives. So what makes Indonesia important enough to bring the US President to his feet?
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Indonesia hosts the world’s largest nickel reserves. Therefore, it is among the countries that stand out in the new electric vehicle era we are in. Therefore, it is not surprising that Tesla wants to team up with companies that produce their own batteries as well as electric cars. Because the USA also wants to open new doors and make agreements with many countries in order to break China’s pressure.
As a matter of fact, it is said that US President Joe Biden will specifically discuss this issue with Indonesian President Joko Widodo during his visit this week, regarding the import of minerals required for the production of batteries used in electric vehicles. However, since detailed planning will take a long time, official announcements may be delayed until next year.
However, Tesla CEO Elon Musk, who recently hosted Indonesian officials at the Texas Gigafactory, aims to increase warm relations and speed up the process. Additionally, it is known that there is pressure from Ford. Therefore, the agreement is considered final.