JAKARTA, July 20 (Xinhua) -- German carmaker Volkswagen (VW) will build a production and processing plant for nickel ore in Indonesia for the first time, Indonesian Investment Minister Bahlil Lahadalia told a press conference on Wednesday.
The investment will be realized this year, taking place in Batang regency in Central Java province and Sulawesi island, according to the minister.
"However, we're still negotiating the value of the investment as VW still bargains for some incentives and counts the nickel ore reserve capacity," Lahadalia said, adding that he already met VW Chief Procurement Officer Jorg Teichmann at his office in Jakarta on Tuesday.
Indonesia is known as rich in the reserve of nickel ore, a primary component of electric vehicle batteries.
The Southeast Asia's largest economy is estimated to have deposits of at least 72 million tons of nickel reserves in areas of domestic mining operations, accounting for 52 percent of the world's total reserves of around 139 million tons, according to data from the country's Ministry of Energy and Mineral Resources.
Data from Indonesia's Central Statistic Agency shows that in the first quarter of 2022, the country's export of nickel products saw a significant increase of 330.43 percent compared to the same period of 2021. ■