Volkswagen through its subsidiary, PowerCo, will invest in Indonesia’s EV battery industry to supply electric battery products to automotive brands under its auspices.
Heaptalk, Jakarta — The German automobile manufacturer, Volkswagen (VW), plans to invest in building an integrated electric vehicle (EV) battery industry in Indonesia through its subsidiary, PowerCo.
The plan was discussed at a meeting between PowerCo’s Chief Executive Officer (CEO) Frank Blome and PowerCo’s Chief Purchasing Officer (CPO) Jörg Teichmann with President Joko Widodo and Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia in Hannover, Germany.
Perceiving the project, Minister Bahlil expressed his appreciation and will provide guidance on Volkswagen’s investment plan. Volkswagen’s investment plan in Indonesia is targeted to supply electric battery products to a number of automotive brands under the auspices of the VW Group.
Bahlil said, “VW will cooperate with several national and foreign companies. We are ready to oversee that the investment plan will be realized soon.” According to him, this investment plan from Germany is the right moment for Indonesia to convey to the world that Indonesia is open to attracting investment not only from Asia but also from Europe.
“I think this is a form of inclusive investment and can at the same time deprive the international world’s way of thinking that considers mining in Indonesia does not pay attention to international principles,” Bahlil voiced.
PowerCo was founded in July 2022
Germany itself occupies the 16th position of foreign countries with the highest investment value with a total investment of US$991 million during 2018-2022. Based on the business sector, Germany’s highest investment was in the machinery, electronics, medical instruments, electrical equipment, precision, optical, and clock industry sectors worth US$308.4 million and the largest investment was in Java worth US$499.8 million.
Meanwhile, PowerCo SE is a subsidiary of Volkswagen which was founded in July 2022 and is headquartered in Salzgitter, Germany. The company carries out all the battery activities of the Volkswagen Group, including processing raw materials, developing batteries, and managing European gigafactories. Currently, PowerCo has three gigafactory locations, spanning Salzgitter in Germany, Valencia in Spain, and St. Thomas in Canada.
The company is targeted to supply 80% of electric battery products to a number of automotive brands under the Volkswagen Group, spanning Audi, Skoda, Lamborghini, Porsche, Bentley, and Ducati. PowerCo plans to set up cell factories with a total capacity of 240 GWh/year in 2030.
