Toyota is set to invest $2 billion into the development of electric vehicles in Indonesia over the next four years, according to a report from Reuters.
In a statement released by Indonesia’s coordinating ministry for maritime affairs, Toyota president Akio Toyoda said that “from 2019 to 2023, we will progressively increase our investment to 28.3 trillion rupiah ($2 billion).”
Indonesia is the largest economy in the region and has large reserves of nickel laterite ore, a key ingredient needed in lithium-ion batteries which power EVs. Country officials believe the nation can become a major regional player in lithium battery production and the nation has been pushing to attract investments from foreign car manufacturers.
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Toyota agreed to its investment with Indonesia during an Osaka meeting between the country’s coordinating minister for Maritime Affairs Luhut Pandjaitain and Toyota chief executive Akio Toyoda.
“Because the Indonesian government already has an electric vehicle development map, Toyota considers Indonesia a prime EV investment destination,” Toyoda said.
The Japanese car manufacturer’s investment will be rolled out in stages, initially starting with the development of hybrid vehicles in Indonesia but as of writing, no announcement has been made about how Toyota will implement its investment plans.
This isn’t the first major investment in the country regarding electric vehicles. In December, Hyundai announced an $880 million automotive investment in the country to start building EVs locally. In addition, Mitsubishi has been working with the Indonesian government to research local infrastructure which could accommodate electric vehicles.