South Korean battery maker LG Energy Solution is leading a $9 billion integrated project in Indonesia alongside partners including compatriot steelmaker Posco, Kallanish reports.

The company has signed a framework agreement with Indonesian state companies Antam and Indonesia Battery Corporation (IBC) to develop an end-to-end EV battery project in the South-East Asia country. The agreement is similar to the one signed with CBL – a CATL subsidiary – targeting an investment of $5.95 billion.

According to IBC, the non-binding investment agreements estimated at $15 billion are important milestones in the country’s ambitions to lead the global EV battery industry. Government officials echoed the sentiment in a statement, adding they look forward to the further and prompt implementation by the parties.

IBC’s president director Toto Nugroho hopes the collaboration “will be continued to bring a positive contribution to the nation.” He believes the creation of the integrated EV battery industry will accelerate the development of “eclectic vehicle ecosystems” in Indonesia, increase local content consumption and lift the use of batteries for other purposes.

The consortium led by LGES includes LG Chem, Posco, LX International Corp. and Huayou Cobalt. The aim is to establish an end-to-end value chain for EV batteries covering the procurement of raw materials, producing key components and manufacturing cells.

The project is designed to move the Indonesian nickel value chain downstream. It should include smelting and refining of nickel, production of precursors and cathode materials, and assembly of finished products.

“With this project, we expect to be able to enhance the battery business capabilities and profitability by stably securing competitive raw materials,” LGES told the Korean press on Monday.