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Foxconn to start $8 billion investment in Indonesia EV sector in Q3 -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: On Tucheng in Taipei County’s May 25th 2010, the Foxconn logo was visible on their headquarters. REUTERS/Nicky Loh

JAKARTA, Reuters – Foxconn from Taiwan will invest $8 billion in Indonesia for the manufacture of electric vehicles and batteries in the third quarter. This was announced Wednesday by an Indonesian minister.

Bahlil Lahadalia, Investment Minister, stated that the iPhone manufacturer will construct a factory in Batang, Central Java, on 200 hectares (494.3 acres). This plant will make batteries, cathode precursor, and spare parts for telecommunications.

Foxconn has not yet responded to Reuters’ request for comment regarding the investment.

The firm last month said it would partner with Indonesia’s investment ministry and other companies for a wide scope of investment on EVs https://reut.rs/3HDXVnb, including battery manufacturing.

The partnership comprised the state-owned Indonesia Battery Corporation and energy firm PT Indika Energy.

Foxconn announced deals with Fisker Inc, an American startup, and PTT Energy Group in Thailand to expand its EV business.

Indonesia is trying to attract Foxconn investment since years, but an earlier deal in 2015 fell through.

Foxconn (investment) was canceled because the company had previously requested land and a tax holiday incentive. Bahlil stated that the president gave me orders to look for a way of getting Foxconn.

He added, “Now that the government has given cheap land to an industrial area… in close proximity to a railroad and tollroad,”

Indonesia is a top nickel producer and has big plans for processing its nickel laterite ore, which will be used to make lithium batteries.

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