Tesla Inc (NASDAQ: TSLA) supplier LG Energy Solution, which spun-off from LG Chem earlier this month, has signed a $9.8 billion electric vehicle battery investment agreement with Indonesia, Reuters reported Wednesday.
The memorandum of understanding (MOU) was signed on Dec. 18 and entails cooperation with other companies including Korea’s Hyundai, the owner of Hyundai Motor Company (OTC: HYMTF), as per Bahlil Lahadalia, head of Indonesia’s Investment Coordinating Board (BKPM).
The official said that the agreement makes the South East Asian nation the first to “integrate the electric battery industry from mining to (producing) electric car lithium batteries. Mines, smelters, precursors, cathodes, cars to recycling facilities will be built in Indonesia,” as per Bahlil.
This summer, Hyundai said that it was collaborating with LG Chem on various projects but said at the time that “no concrete discussion has been made on a battery joint venture in Indonesia,” Reuters reported separately.
The Elon Musk-led Tesla is also reportedly looking to tap Indonesia’s nickel reserves for EV components.
The country’s president Joko Widodo aims to make Indonesia the largest producer of lithium batteries.
In October, reports emerged that Musk was exploring building a battery factory in Indonesia’s Batang in Central Java.