Indonesia and the South Korean battery manufacturer have signed a memorandum of understanding (MOU).

LG Chem's LG Energy Solution is seriously considering a massive $9.8 billion investment related to EV batteries in Indonesia.

According to Reuters, the company signed a memorandum of understanding (MOU) with Indonesia's government on December 18, but the news was announced just recently.

Indonesia has huge resources of nickel ore, but requires that a company processes at least 70% of it in the country. Because of that, the foreign investor must basically build an integrated manufacturing complex in North Maluku and Central Java.

Bahlil Lahadalia, the head of Indonesia’s Investment Coordinating Board said:

“We have signed an MOU for the construction of an integrated electric battery factory from upstream to downstream,”

“Mines, smelters, precursors, cathodes, cars to recycling facilities will be built in Indonesia,”

MOU is not a definitive agreement, and there are at least several other investors interested in nickel ore from Indonesia, including CATL, Hyundai (in partnership with LG Chem) and Tesla.

Time will tell whic company proposed the best deal and was selected for the business.