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

Europe’s China strategy turns from caution to confrontation

The European Union is moving closer to a more confrontational trade and industrial posture toward China, but it is doing so with deep internal hesitation because the bloc remains heavily dependent on Chinese markets, components and raw materials. The immediate context is the Group of Seven’s new pledge to reduce reliance on China for critical minerals, rare earths and permanent magnets.

That commitment adds momentum to a parallel debate inside the EU over whether Europe needs tougher instruments to defend its industries from Chinese state-backed competition and to reduce vulnerabilities in strategic supply chains. The shift is significant because the EU’s China debate has changed from a largely diplomatic argument about market access into a broader economic-security discussion.

U.S. drone firms pitch “Ukraine-proven” systems to Asian militaries

A cluster of U.S. drone and military-AI companies used the Singapore Airshow to make a very specific pitch: their next phase of growth lies not in chasing incremental Pentagon programs, but in exporting “Ukraine-proven” unmanned systems to Asian militaries preparing for a more contested Western Pacific.

Several firms that have become emblematic of Silicon Valley’s defense-tech surge, most prominently Anduril and Shield AI, alongside smaller players such as Neros Technologies and established supplier AeroVironment, showcased everything from expendable quadcopters intended for one-way attacks to larger reconnaissance platforms and even conceptual “loyal wingman” jets meant to operate with crewed fighters.

US LNG exports to China surge 63% in 2024, but trade risks loom

The United States has significantly increased its liquefied natural gas (LNG) exports to China this year, with volumes rising 63% in the first 10 months of 2024 compared to the same period in 2023, according to Chinese customs data. This surge positions the US as China’s fifth-largest LNG supplier, trailing Australia, Qatar…

Stay informed

error: Content is protected !!