Ford to establish manufacturing facility in country by 2025, says minister
Electrive, 6 December '24
Indonesia's Deputy Minister of Industry, Faisol Riza, announced at an event in Jakarta that Ford has committed to establishing a manufacturing facility and investing in Indonesia by 2025.
This announcement has been widely reported by various media outlets; however, Ford has yet to issue an official confirmation.
Since the inauguration of President Prabowo Subianto's administration in October, the Indonesian government has reportedly initiated discussions with several leading global automotive manufacturers, including the Volkswagen Group and Ford.
Ford re-entered the Indonesian market in 2022 after a six-year absence, operating through a partnership with the Bangkok-based RMA Group. It is anticipated that any electric vehicle (EV) production facility Ford establishes in Indonesia would primarily cater to export markets in the Asia-Pacific region and beyond.
Despite recognising Indonesia's potential, Ford is concurrently undertaking significant workforce reductions in Europe.
In early 2023, Ford announced it had secured a significant supply of nickel from Indonesia for use in electric vehicle (EV) batteries.
In partnership with Vale Indonesia, a prominent mining company, and the Chinese firm Huayou Cobalt, Ford invested in the development of a nickel processing facility in Pomalaa, southeast Sulawesi, where Vale operates a nickel mine.
The project aims to produce up to 120,000 tons annually of an intermediate nickel product suitable for nickel-rich battery cathodes.
According to media reports earlier , the facility is scheduled to commence operations in 2026, with a total investment of IDR 67.5 trillion (US$ 4.25 billion). A ground-breaking ceremony for the plant, led by Vale and Huayou, was conducted in November 2022.
Designated as a "national strategic project" by the Indonesian government, the nickel processing plant will utilise locally sourced nickel and is expected to create 12,000 jobs in the construction sector.
Indonesia, which possesses the world's largest nickel reserves, implemented a ban on the export of unprocessed nickel ore in 2020 to stimulate the growth of its domestic industry.
This strategic move has attracted the interest of major industry players such as SK On, CATL, and LG.
Additionally, media reports also suggest that Tesla received its first shipment of nickel-based materials from Indonesia in November.