Canberra. Australia and Indonesia advanced their electric vehicle (EV) partnership during the first Senior Officials’ Meeting under the Electric Vehicle Collaboration Memorandum of Understanding (MoU) in Canberra on Friday.

The meeting brought together key officials, including Septian Hario Seto, Indonesia’s Deputy for Investment and Mining Coordination, and Michelle Dowdell, Australia’s Acting Deputy Secretary of the Resources and Strategy Group, along with Lauren Bain, First Assistant Secretary at the Department of Foreign Affairs and Trade. Their discussions focused on advancing the MoU’s initiatives.

Signed in 2023 by Indonesia’s State-Owned Enterprises (SOE) Minister Erick Thohir, and Australia’s Science and Industry Minister, Ed Husic, the MoU sets out a framework for collaboration on critical areas such as mapping EV supply chains, improving environmental and social governance, conducting joint scientific research, and fostering new business-to-business connections. The MoU aligns with a broader agreement between Australian Prime Minister Anthony Albanese and Indonesian President Joko Widodo to enhance cooperation in the EV ecosystem.

“Australia and Indonesia are partners in the clean energy transition, and we have a shared interest in growing diverse clean energy supply chains. I’m pleased that we are progressing collaboration on this important agreement,” said Australian Ambassador to Indonesia Penny Williams PSM in an official statement.

As part of the commitment to this partnership, the Australian Government has allocated A$2 million (Rp 20.98 billion) for joint EV project research under the KONEKSI program. This funding will support efforts in transport decarbonization and battery recycling, both critical components of a sustainable EV supply chain.

The discussions in Canberra are part of ongoing efforts to strengthen cooperation between the two nations, particularly in the context of the global clean energy transition. The collaboration is especially significant given Indonesia's abundant nickel reserves, a key material for EV batteries, and Australia’s position as the world’s largest exporter of lithium. Both countries are well-positioned to become central players in the global EV supply chain, and their partnership is seen as vital to achieving this goal.

During a recent bilateral meeting in Melbourne, President Joko Widodo emphasized to Prime Minister Anthony Albanese the importance of cooperation over competition in the nickel sector. With Indonesia needing to import lithium despite its vast nickel resources, and Australia being a leading lithium producer, the collaboration on EVs is expected to be mutually beneficial. Australia's exports of lithium, which accounted for 46% of the global supply in 2020, are projected to contribute $9.4 billion to its economy by 2023-24.