Volkswagen has announced that it will join the partnership of Vale, Ford and Zhejiang Huayou Cobalt to create an electric vehicle battery ecosystem in Indonesia. 

Indonesia’s minister of investment Bahlil Lahadalia revealed that the German car manufacturer would be partnering with the other companies in a series of joint ventures in the country. Additionally, they aim to help to develop the supply of raw materials. 

The agreement aims to see Volkswagen capitalise on Indonesia’s vast quantities of nickel. The south Asian state is the world’s leading source of the metal that forms a vital part of EV batteries. Volkswagen will take their nickel from a mine owned by Vale, which is among the country’s largest nickel producers. 

Ford and Volkswagen hope to lower the cost of EV production and hope to mitigate the expense at which their batteries are made. 

Indonesia’s President Joko Widodo has already pledged to improve the standard of Indonesia’s nickel operations. This is in preparation for the expected boom in nickel mining in the country.