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Toyota to invest $2 billion into the development of electric cars in Indonesia

JAKARTA (Reuters) – Toyota Motor Corp plans to invest up to $2 billion for the development of electric vehicles (EVs) in Indonesia over the next four years, to begin with, hybrid vehicles, and Indonesia’s coordinating ministry for maritime affairs has said.

FILE PHOTO: A Toyota electric vehicle (EV) is a concept of WINDOW is displayed during the media day of the Shanghai auto show in Shanghai, China-April 17, 2019 at the latest. (REUTERS photo/Aly Song, File/Photo

“Starting in 2019 through 2023, we will gradually increase our investment to 28.3 billion rupees ($2 billion), and the” Toyota’s president, Akio Toyoda, was quoted as saying in a statement released by the ministry on Thursday.

The Japanese carmaker, said this month that it is facing the center of the world-wide sales of electric vehicles by 2025, five years ahead of schedule, and then on to the Chinese battery makers, in order to meet the accelerating global transition to electric vehicles.

The deal was agreed during a meeting in rio de janeiro on a Thursday, between the indonesian Co-ordinating Minister for Maritime Affairs, Luhut Pandjaitan, and Toyoda.

“The Indonesian government has already made an electric car development in Toyota’s opinion, Indonesia is a prime, and EV investment destination,” Toyoda said in a statement.

He said Toyota would have to follow the government’s EV plan to invest in stages, starting with the development of hybrid electric vehicles.

Monet’s self-driving car is a joint-venture company, Toyota, and SoftBank Corp., individually, told Reuters in June it plans to start operating in South-east Asia next year.

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In indonesia, the region’s largest economy, and has abundant reserves of nickel laterite ore, a key ingredient in the lithium-ion batteries used to power EVs, and it is making a push to attract a foreign automobile manufacturers.

Officials are betting Indonesia, which has already been South east Asia’s largest car production hub, it can develop into a major regional player in the lithium battery production and imports, and the rapid increase in demand for ev’s.

In the country, announced earlier, in 2019, plans to introduce a tax regime, tax relief for EV battery producers and automakers, as well as agreements with other countries that have a high EV question.

Indonesian government ministers, told Reuters in December that the south Korean car manufacturer, Hyundai Motor Co. plans to begin production of EVs in Indonesia, part of the around the $880-million automotive investment in the country.

To the japanese, Mitsubishi, meanwhile, announced in mid-2018, it would be to work with the Indonesian government to establish the research infrastructure that would be able to provide to the Service.

Analysts caution, however, on how fast Indonesia’s EV ambitions will be able to be carried out, such as the lithium ion battery projects to complex the nickel smelter technology.

The ministry’s statement on Thursday gave no detail on how the Toyota, which already makes batteries for hybrid and hybrid plug-ins, it would be in the implementation of its investment plans.

Toyota was not immediately available for comment, but said in June it would partner with China’s Contemporary Amperex Technology Ltd (CATL), and the EV-maker BYD Co. Ltd. battery pack for the award of public works contracts.

Reporting Fanny Potkin; Editing by Ed Davies, Alexander Smith, Harvey, Jan

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