JAKARTA, Indonesia will start importing lithium from Australia to support its rapidly expanding electric vehicle (EV) sector, Energy and Mineral Resources Minister Bahlil Lahadalia announced Tuesday, reinforcing the country’s ambition to become a key EV manufacturing hub in the region.
Speaking at the International Battery Summit in Jakarta, Bahlil said the move aligns with Indonesia’s EV development roadmap, launched in 2020 under President Joko Widodo.
“Our goal of building a complete EV battery ecosystem is part of a broader mineral downstreaming strategy we’ve pursued since 2020,” Bahlil stated.
While Indonesia boasts abundant reserves of nickel and manganese—critical materials for EV batteries—it lacks domestic lithium, prompting the government to secure alternative sources. Although lithium has previously been imported from Africa, Bahlil noted that Australia offers a more cost-efficient supply due to proximity and lower shipping costs.
“The import arrangement will follow a business-to-business model, and the volume will depend on the needs of Indonesian companies,” he added.
The announcement comes amid a surge in EV uptake across the country. Indonesia’s EV fleet rose to about 207,000 units in 2024, compared to 116,000 the year before. In the first half of 2025 alone, EVs made up approximately 10% of all new car sales—double the 5% share recorded in 2024.
By 2030, Indonesia aims to produce 9 million electric motorcycles and 600,000 electric cars and buses. These targets are expected to reduce fossil fuel usage by 21.65 million barrels and cut carbon emissions by 7.9 million tonnes.
