Indonesia will ramp up its lithium imports from Australia to support the growing electric vehicle (EV) battery industry, according to Minister of Energy and Mineral Resources Bahlil Lahadalia. While Indonesia possesses key raw materials for EV batteries, such as nickel, cobalt, and manganese, it lacks domestic lithium resources. As a result, the Indonesian government will collaborate with Australia to secure a steady lithium supply.
“We’re talking about critical minerals because we’re building an ecosystem for electric vehicle batteries. Fortunately, we have nickel, manganese, and cobalt, but what we don’t have yet is lithium,” Bahlil said during a broadcast on IDX Channel on Friday, May 16, 2025.
This collaboration aims to accelerate the development of Indonesia's EV battery ecosystem and signals the government's commitment to advancing the energy transition toward clean and sustainable energy.
“The agreement with Australia will involve them shipping lithium concentrate to Indonesia, where it will be processed domestically,” Bahlil explained.
Under the arrangement, Australia will export unprocessed lithium concentrate to Indonesia, which will then refine it into raw materials for EV batteries. This effort is part of Indonesia's broader strategy to develop its domestic EV battery supply chain and support the transition to clean energy.
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“The lithium will be integrated directly into battery ecosystem factories, specifically for electric vehicle and car batteries,” he added.
The cooperation was discussed during Australian Prime Minister Anthony Albanese’s state visit to Indonesia, where he met with Indonesian President Prabowo Subianto on Thursday, May 15, 2025. One of the key agenda items was the agreement for Indonesia to purchase lithium concentrate from Australia.
Australia is the world’s largest lithium producer, with an annual output of 1.34 million tons of lithium concentrate, primarily sourced from the Greenbushes mine operated by Talison Lithium, a joint venture between Tianqi Lithium, IGO, and Albemarle Corp.
Global lithium production reached 1.17 million tons in 2024. Currently, Indonesia imports about 80,000 tons of lithium annually from Australia. With the new agreement, Indonesian imports are expected to increase significantly.
Editing by Reiner Simanjuntak
