Australia and Indonesia Strengthen Partnership in Electric Vehicle Supply Chain and Research

Australia and Indonesia have taken significant steps to enhance their partnership in the electric vehicle (EV) sector during the inaugural Senior Officials’ Meeting under the Electric Vehicle Collaboration Memorandum of Understanding (MoU) held in Canberra on Friday. The meeting included prominent officials such as Septian Hario Seto, Indonesia’s Deputy for Investment and Mining Coordination, and Michelle Dowdell, Australia’s Acting Deputy Secretary of the Resources and Strategy Group, along with Lauren Bain, First Assistant Secretary at the Department of Foreign Affairs and Trade. The discussions focused on furthering the initiatives outlined in the MoU.

The MoU, signed in 2023 by Indonesia’s State-Owned Enterprises (SOE) Minister Erick Thohir and Australia’s Science and Industry Minister Ed Husic, provides a framework for collaboration in critical areas. These include mapping EV supply chains, enhancing environmental and social governance, conducting joint scientific research, and promoting new business-to-business connections. The MoU is part of a broader commitment between Australian Prime Minister Anthony Albanese and Indonesian President Joko Widodo to strengthen cooperation within the EV ecosystem.

Australian Ambassador to Indonesia Penny Williams PSM expressed optimism about the partnership: “Australia and Indonesia are partners in the clean energy transition, and we have a shared interest in growing diverse clean energy supply chains. I’m pleased that we are progressing in our collaboration on this important agreement.”

In support of this partnership, the Australian Government has dedicated A$2 million (Rp 20.98 billion) for joint EV project research under the KONEKSI program. This funding will focus on essential aspects of a sustainable EV supply chain, such as transport decarbonization and battery recycling.

The meeting in Canberra is part of ongoing efforts to deepen cooperation between the two nations, particularly in the context of the global clean energy transition. The collaboration is crucial given Indonesia's rich nickel reserves, a vital component for EV batteries, and Australia’s position as the world's largest lithium exporter. Both nations are well-positioned to become key players in the global EV supply chain, making their partnership vital to achieving this shared goal.

In a recent bilateral meeting in Melbourne, President Joko Widodo highlighted the need for cooperation rather than competition in the nickel sector during discussions with Prime Minister Anthony Albanese. With Indonesia needing to import lithium despite its vast nickel resources and Australia being a leading lithium producer, their collaboration on EVs is expected to be mutually advantageous. Australia's lithium exports, which made up 46% of the global supply in 2020, are projected to contribute $9.4 billion to its economy by 2023-24.