Foxconn sets up a joint venture in Indonesia to produce electric cars and batteries

According to reports on the evening of September 23, Beijing time, Foxconn announced today that it will set up a joint venture with energy company Indika Energy in Indonesia to produce electric cars and batteries.

The joint venture, called Foxconn Indika Motor, will produce electric vehicles in Indonesia and develop its supporting industries, including batteries, the two companies said in a joint statement. In addition, the two sides will explore broader investment cooperation to work with other partners to create a comprehensive electric vehicle ecosystem.

Indonesia is the world's largest producer of nickel, and nickel is an important part of electric vehicle batteries. Insi has always hoped to make use of its resource advantages to become a key participant in the global electric vehicle supply chain. Last month it was reported that Tesla had signed a contract worth about $5 billion in Indonesia to buy battery materials such as nickel from Indonesia over the next five years.

A spokesman for Foxconn told the media that Foxconn would initially invest $1.75 million in the joint venture, taking a 40 per cent stake.

The joint venture will first focus on developing lithium iron phosphate batteries for electric vehicles and on making commercial vehicles such as electric buses, according to people familiar with the matter. In addition, the joint venture will also explore how to make full use of Indonesia's large amount of mineral and natural resources, which will lay a solid foundation for the future production of electric vehicle batteries.