Indonesia wants to discuss critical minerals trade deal with the U.S.

Indonesia has requested talks with the United States to establish a trade deal for critical minerals. This would enable exports from Indonesia, which holds the world’s largest nickel reserves, to be covered under the U.S. Inflation Reduction Act. Such a deal would potentially allow Indonesian exports to qualify for tax credits when used in electric vehicle (EV) batteries sold in the United States.

The request was made during a meeting between Indonesian President Joko Widodo and U.S. Vice President Kamala Harris on the sidelines of ASEAN meetings in Jakarta.

Under the U.S. Inflation Reduction Act, a certain amount of critical minerals in EV batteries must be produced or assembled in North America or a free trade partner for EVs sold in the United States to be eligible for tax credits. Indonesia lacks a free trade agreement with the United States but has ambitions to become a significant player in EV and battery manufacturing, leveraging its extensive nickel reserves.

President Jokowi noted that Indonesia can become a supplier for batteries and EVs in the U.S. due to its substantial nickel reserves. He invited the U.S. to discuss the formation of a Critical Mineral Agreement. Additionally, he expressed hope that Indonesia’s involvement in the U.S.-led Indo-Pacific Economic Framework (IPEF) could allow its mineral exports to qualify for “green subsidies” under the Inflation Reduction Act.

The proposal for a limited free trade deal with the United States was initially brought up in April by Indonesian minister Luhut Pandjaitan. The goal is to offer the U.S. an agreement similar to the one between Japan and the U.S. for EV battery minerals.

During the meeting, Vice President Harris expressed her commitment to working with Indonesia to build supply chains that include critical minerals required for clean energy economies and to boost trade between the two countries through IPEF.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

25 companies take part in Norway’s latest offshore oil and gas licensing round

Norway’s latest offshore oil and gas exploration licensing round has attracted bids from 25 companies, including prominent names like Shell, ConocoPhillips, Aker BP, and Equinor, according to the country’s energy ministry. This annual licensing round is a central part of Norway’s strategy to extend oil and gas production for several decades, despite opposition from environmental groups concerned about its impact on the climate.

GM orders suppliers to strip China content by 2027

General Motors is quietly pushing one of the most aggressive supply chain rewrites in the U.S. auto industry, instructing thousands of suppliers to strip Chinese content from parts destined for North American assembly lines. People briefed on the program say the company has told vendors to find non-China sources for everything from raw materials to basic components, with a first wave facing a 2027 cutoff.

GM began floating the directive with select suppliers in late 2024, but the initiative intensified this spring as U.S.-China trade frictions whipsawed tariffs, export controls, and the flow of critical inputs. Executives frame the shift as a resiliency play: fewer single-country choke points, more visibility into origins, and a procurement base that won’t unravel when geopolitics does.

Biden unveils tariff increases on Chinese EV batteries, chips, and more

President Joe Biden unveiled a series of significant tariff increases on various Chinese imports, including electric vehicle (EV) batteries, computer chips, and medical products. These measures aim to address concerns about unfair competition and intellectual property theft while signaling a tough stance…

Stay informed

error: Content is protected !!