Tokyo. Indonesia and the United States have recently signed a cooperation agreement to extract lithium from geothermal brine, marking a strategic step to strengthen the global electric vehicle (EV) supply chain.

Energy and Mineral Resources Minister Bahlil Lahadalia witnessed the signing during a visit to Tokyo, where he attended the Indo-Pacific Energy Security Ministerial and Business Forum.

The agreement brings together state-owned geothermal developer Geo Dipa Energi and US-based Lilac Solutions to harness Indonesia’s geothermal resources for lithium extraction.

Earlier this month, Lilac announced support from the US Trade and Development Agency to deploy its technology in Indonesia, aiming to diversify critical mineral supply chains by increasing lithium recovery from geothermal operations. The initiative is expected to establish Indonesia’s first facility to extract lithium from geothermal brine.

“The project will create a trusted source of lithium supply — an essential component in modern technologies — while supporting a vital renewable energy resource in Indonesia,” Lilac said in a statement.

The company plans to deploy its ion-exchange direct lithium recovery technology at the Dieng geothermal field in Central Java, enabling the production of high-grade lithium carbonate through an environmentally responsible process.

Lilac CEO Raef Sully said the partnership highlights the global competitiveness of US technology in critical minerals.

“Indonesia’s geothermal fields hold significant untapped lithium potential, and this project will demonstrate that ion-exchange technology can unlock it responsibly and at scale,” he said.

USTDA’s involvement is also expected to connect Geo Dipa with potential US buyers of the lithium produced. By demonstrating the scalability of the technology, the project aims to attract financing for future expansion and unlock broader opportunities across Indonesia’s geothermal sector and the wider Indo-Pacific region.

Geo Dipa CEO Yudistian Yunis said the initiative could support Indonesia’s domestic battery industry and other lithium-based applications by unlocking additional value from renewable resources.

“Lithium is naturally present in geothermal brine that is already part of existing operations, allowing us to generate economic benefits for local communities while maintaining strong environmental stewardship,” Yudistian said.

During his visit, Bahlil also held meetings with regional counterparts to deepen energy cooperation. He discussed plans with Singapore’s Manpower Minister Tan See Leng to develop the Riau Islands as a green technology industrial hub.

In addition, Bahlil met Brunei’s Deputy Energy Minister Awang Haji Mohamad Azmi to explore collaboration ranging from oil supply security to renewable energy development.

“Amid global energy supply uncertainties, we must strengthen cooperation that lifts each other up, rather than undermines one another,” Bahlil said in a statement.