Indonesia doubles lithium imports to boost EV battery production

Indonesia is accelerating plans to increase lithium imports, particularly from Australia, in a bid to fill gaps in the electric vehicle (EV) battery supply chain and realize its ambition of becoming a global EV manufacturing hub.

While Indonesia has previously imported lithium from African countries, Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia noted that sourcing it from Australia would be more cost-effective due to reduced shipping distances.

To strengthen supply reliability, the government has instructed state-owned mining company MIND ID to explore lithium reserves in Australia’s Northern Territory. The partnership was initiated through an agreement signed in November 2024.

Indonesia’s EV battery strategy centers around the development of nickel-manganese-cobalt (NMC) batteries, leveraging its vast nickel reserves. Lithium is a vital component in all lithium-ion batteries, including both NMC and lithium-iron-phosphate (LFP) variants, which are increasingly being explored by Indonesian manufacturers.

Dimas Muhamad, Deputy Coordinator of the Energy Ministry’s downstream development and energy security task force, highlighted the need for knowledge transfer in these partnerships.

As part of a broader push to build a resilient battery industry, Indonesia is also enhancing ties with China, the global leader in lithium refining.

In parallel, it has partnered with French mining company Eramet to explore potential lithium deposits in Bledug Kluwu, Central Java, with the goal of identifying domestic sources for future use.