Business envoy November 2021
Katalis - a new Indonesia-Australia business development program - is exploring the potential for a globally competitive electric vehicle (EV) industry, driven by bilateral commercial partnerships.
The commencement last year of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) brought into focus areas of complementarity between Australia and Indonesia, two of the region's largest economies. A new study commissioned by Katalis into EV manufacturing is evaluating the opportunity for collaboration between Australia's resource and green tech industries, and Indonesia's automotive sector.
Our initial analysis has identified commercial partnership opportunities across minerals supply and processing, battery and vehicle manufacturing, technology platforms, and charging infrastructure.
Paul Bartlett
Katalis Director
Australia offers minerals like lithium needed to power EV batteries, battery development expertise, and precision engineering, while Indonesia offers a mature car-making capability and some of the world's largest reserves of nickel, which is also used in battery production.
Batteries are the most valuable component in electric vehicles, worth around 35 per cent of the value of the vehicle.
The Government of Indonesia recently released a plan to support its automotive sector to build an integrated EV battery industry within the next ten years. According to Mr Bartlett, building such an ecosystem will require private sector partnerships and support – which is where Katalis comes in.
Business, industries, and other organisations can apply for support to undertake market research, develop in-country networks, build bilateral expertise, and undertake exchange and industry skills development.
Our insights, technical advice, policy advocacy and skills exchange facilitate connections, overcome barriers, and align business, trade and investment ecosystems.
Paul Bartlett
Katalis Director
Australian Ambassador Penny Williams, said the preliminary results for the EV study commissioned by Katalis and undertaken by EY was an early demonstration of the value of bilateral economic cooperation.
Under IA-CEPA, Katalis is investing in support for new and developing business ideas between the two countries.
Global demand and investment in electric vehicles is accelerating rapidly and IA-CEPA positions both countries to realise significant commercial opportunities in this area.
Katalis aims to link business sector-led activities to mutually beneficial trade and development outcomes, and we are excited by the potential identified in this early work.
As both economies recover from COVID, we're hoping to enable sustainable, equitable and socially inclusive growth
Penny Williams
Australian Ambassador to Indonesia
IA-CEPA ECP Katalis (Katalis) was established in 2021 under IA-CEPA by the Governments of Indonesia and Australia to maximise the benefits of IA-CEPA for both countries.
More information can be found at www.iacepa-katalis.org or info@iacepa-katalis.org