Indonesia To Set Up $2 Billion EV Fund With China’s CATL, CMB International
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The Indonesia Investment Authority, the country’s sovereign wealth fund, is to set up a green electric vehicle (EV) fund of at least $2 billion with China’s battery maker CATL and CMB International, the fund’s CEO said on Monday.
The announcement was made in a live-streamed business conference on the sidelines of the G20 summit.
INA CEO Ridha Wirakusumah then signed an agreement for the partnership with company executives from CATL and CMB International.
The fund will invest in the EV value chain to capture a market that is expected to grow fast globally, driven by countries’ pledges to reduce greenhouse gas emissions, Ridha said.
“With CATL and CMB International as the main partners, we are looking for limited partners to invest in the green EV fund, to seize this EV value chain opportunity primarily in Indonesia,” Ridha said.
Indonesia’s own EV market is on track to grow, with 2.1 million electric motorcycle and 400,000 electric cars expected to be sold by 2025, Ridha said.
Indonesia is keen to develop its own EV and battery industries at home, after banning exports of nickel ore to ensure supply for investors since 2020.
Earlier this year, CATL announced a $6 billion power battery project in Indonesia, in partnership with Indonesian companies.
Questions & Answers
Q.What is the purpose of this new EV fund?
What is the purpose of this new EV fund?
The fund aims to invest in the electric vehicle value chain. It seeks to capture a fast-growing global market, driven by countries' commitments to reduce greenhouse gas emissions, primarily within Indonesia itself.
Q.Who are the key partners involved in setting up this fund?
Who are the key partners involved in setting up this fund?
The Indonesia Investment Authority is establishing the fund with China's battery maker CATL and CMB International. The INA CEO signed an agreement for this partnership with executives from the two companies.
Q.What are the sales projections for electric vehicles in Indonesia?
What are the sales projections for electric vehicles in Indonesia?
Indonesia anticipates strong growth in its EV market by 2025. It expects to sell 2.1 million electric motorcycles and 400,000 electric cars, according to the INA CEO.
Q.How does Indonesia aim to support its domestic EV and battery industries?
How does Indonesia aim to support its domestic EV and battery industries?
Indonesia is keen to develop these industries at home. It has banned nickel ore exports since 2020 to ensure a steady supply for investors, which includes a $6 billion CATL battery project.
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