Sources say Volkswagen will invest 5 billion US dollars to build a factory in Indonesia to seize the key raw materials of batteries.

CTOnews.com, May 29, according to Indonesian media Kumparan, Ikmal Lukman, secretary general of the Indonesian Investment Coordination Committee, said in an interview that Volkswagen will conduct a feasibility study on the battery factory project in the next few months.

▲ Touyuan: Volkswagen reported that the battery factory is part of Volkswagen's plan to build an electric vehicle supply chain in Indonesia, and Volkswagen's total investment in the battery plant is expected to reach $5 billion (CTOnews.com Note: currently about 35.35 billion yuan).

Deal Street Asia quoted people familiar with the matter as saying that construction of the plant would begin by the end of this year. In response, Lukman said the plant would meet global demand for batteries. In addition, Lukman pointed out that the plant will expand its production to electric vehicles in the future.

According to reports, Volkswagen will cooperate with Vale, miner Huayou Cobalt and Ford to establish an electric vehicle battery supply chain in Indonesia. The investment partnership will be led by Volkswagen's PowerCo. According to CTOnews.com, Indonesia has become one of the popular destinations for investment in the electric vehicle supply chain because of its rich resources of key raw materials for batteries such as nickel, copper and cobalt.