China and Indonesia have agreed to strengthen co-operation in the critical mineral and renewable energy sectors, during new Indonesian president Prabowo Subianto's first visit to the country since taking power last month.
"The two sides will tap the potential to co-operate in new energy vehicles, lithium batteries and photovoltaics," according to a joint government statement issued during Prabowo's visit to Beijing on 8-10 November.
China will support Indonesia's efforts to speed up the transformation of its energy sector and will carry out more "high-quality" co-operation with Indonesia in the digital economy, clean energy industry and energy infrastructure sectors, the statement said.
"Indonesia welcomes Chinese enterprises to invest in Indonesia and we look forward to closer co-operation in various fields," Prabowo said at a China-Indonesia business forum on 10 November.
Prabowo chose China as his first overseas destination as president, reflecting growing investment ties between the two countries. Chinese companies have set up more projects in Indonesia in recent years, especially in the electric vehicle power battery industry and steelmaking sectors.
Major Chinese lithium cathode precursor manufacturer Green Eco-Manufacture (GEM) signed a deal with mining firm Vale Indonesia to develop a high-pressure acid leaching (HPAL) project in Sulawesi during Prabowo's visit. The project will produce mixed hydroxide precipitate (MHP), a key feedstock in the production of battery cathodes.
Indonesia is the world's largest nickel producer. The country's share of global output could reach 60.6pc in 2024 and 62.8pc in 2025, mainly thanks to rising production from Chinese-backed projects, according to the International Nickel Study Group (INSG).
Chinese battery cathode material producer Changzhou Liyuan in early October signed an agreement with the Indonesia Investment Authority (INA) consortium to expand capacity of its lithium iron phosphate plant in Indonesia to 120,000 t/yr by 2025, from 30,000 t/yr in the existing first phase. The Indonesian project is likely to become the biggest LFP plant outside China.
Chinese companies are also seeking to secure more aluminium supplies from Indonesia. East China-based Nanshan Aluminium is expanding production capacity at its alumina refinery in Indonesia's Bintan industrial park and is also building a 250,000 t/yr refined aluminium plant in the country. State-owned Chalco is building a 1mn t/yr metallurgical alumina plant in Indonesia, while Tianshan Aluminium is working on an alumina plant in the country that will produce 1mn t/yr in its first phase.
