Foxconn and Indonesian coal miner Indika to bring a third-party partner into their EV partnership

November 21, 2022 4:24 am

Apple supplier Foxconn and Indonesian coal miner PT Indika Energy are considering bringing a third-party partner, a Thai company, into their electric vehicle manufacturing partnership.

Arsjad Rasjid, president of Indonesian mining company Indika, told Reuters that the trio could invest in electric vehicles or EV battery production, without specifying the name of the company or any goal of completing the partnership due to ongoing talks. 

Indika is one of the top coal miners in Indonesia, which is the world's biggest coal exporter.

"We know the strongest automotive strongholds in ASEAN are Indonesia and Thailand ... instead of competing, why don't we complement," he said in a video interview with Reuters while at a gathering of G20 leaders.

In September, Foxconn and Indika Energy announced a joint venture to produce batteries and electric vehicles in Indonesia. Foxconn's initial investment for this newly-formed joint venture will be $1.75 million and taking 40% of the shares.

The biggest iPhone maker is trying to increase its presence in the booming EV sector. In the past three years, in addition to Indonesia, it has opened factories or inked manufacturing deals in the US, Mexico, and other regions.

Foxconn also has a $1 billion JV with Thai energy group PTT to produce battery EVs.

As the world's largest producer of nickel, an essential component in EV batteries, Indonesia is keen to tap its resources to become a key player in the global EV supply chain. 

The government has been promoting the development of a domestic battery industry as well as local electric vehicle manufacturing, a move that has also attracted Chinese battery maker CATL, South Korean LG Energy Solution and South Korean automaker Hyundai Motor.