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

Itochu to supply Google with solar power in Japan under long-term agreement

On Friday, Itochu announced that it has entered into a long-term power supply agreement with Google to support the tech giant’s renewable energy objectives in Japan. Under the agreement, Clean Energy Connect (CEC), a portfolio company of Itochu, will commence providing services…

Muted yuan rise fuels China’s surging trade surplus with Europe

The sharp decline of the U.S. dollar this year has had ripple effects across global currency markets, but China’s yuan has stood out for its relatively muted appreciation against the greenback. While the euro has surged more than 12% and the Japanese yen has risen by over 6%, the yuan is up less than 3% against the dollar in 2025.

This asymmetry means that Beijing has effectively allowed its currency to depreciate against other major currencies, most notably the euro, against which the yuan has lost around 9% since January. For analysts, this amounts to “opportunistic devaluation.” China, they argue, has exploited the dollar’s weakness to quietly enhance its export competitiveness in Europe, at a moment when EU industries are already struggling with high energy costs, U.S. tariffs, and slowing global demand.

Israel, Greece, Cyprus discuss East Med energy cooperation

Leaders from Israel, Greece, and Cyprus have reaffirmed their commitment to deepening energy cooperation in the Eastern Mediterranean. The region has experienced significant natural gas discoveries in the past decade, particularly off the coasts of Israel and Egypt. Recent geopolitical developments, including Russia’s invasion of Ukraine, have increased interest in diversifying Europe’s energy sources.

Stay informed

error: Content is protected !!