Ford will bet on Indonesia as the next big investment to change course in an electric vehicle market it had no history.
Still reeling from setbacks in China and Europe, the automaker seeks to exploit the tremendous untapped potential in Southeast Asia, particularly in Indonesia, which is the world’s largest producer of nickel.
Why Indonesia Should Be Ford’s Next Big Bet on EV
Ford Eyes Indonesia for EV Expansion
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Nickel resources are commonplace in Indonesia and this makes the country a perfect spot for Ford to build a manufacturing plant for electric vehicles, The Jakarta Post, local publication reports.
Since over 20% of the global nickel production is in the country, this likely attracts more investors to test the waters when it comes to EV battery production.
On top of that, EV demand continues to surge globally, making nickel an in-demand component in the process.
Ford is investing in the country at a time when it is struggling to regain its footing elsewhere. In China, the company has struggled to take back market share; in Europe, it has undertaken significant restructuring and job cuts at scale.
Indonesia is one place where there are high growth prospects, low car penetration, a young workforce of appropriate size, and proximity to other South Asian markets. That makes it a highly attractive location for Ford’s next wave of expansion.
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Indonesia’s Rising EV Interest and Strategic Gains
Electrek reports that the government of Indonesia has been aggressively seeking the interest of global automobile manufacturers to establish a presence in Indonesia, especially in the electric vehicle industry.
Indonesia is pursuing two ends: investing in its vast nickel supply for electric vehicle battery production and massive employment for its youth, who have ever-increasing numbers.
Simultaneously, the Southeast Asian nation aims to increase its domestic electric vehicle production by setting strong local content requirements. Indonesia wants to increase local content requirements for BEVs to 40% by the end of 2026, and then to 80% for the entire vehicle by 2030.
Ford has promised to set up a factory and increase investments in the country by next year, Indonesia’s Deputy Industry Minister Faisol Riza said during an event in Jakarta. The move will be a major step in the company’s strategy to grab a slice of the fast-growing automotive market in Southeast Asia.
Ford’s Nickel Processing Project in Indonesia
The company’s partnership with the world’s largest mining giant, Vale, and China’s Zhejiang Huayou Cobalt Company in a $4.5 billion nickel processing project on the Indonesian island of Sulawesi also plays a crucial role in the automaker’s strategy.
The mine is set to begin operations in 2026. It is expected to produce up to 120,000 tonnes of nickel yearly for cathodes of EV batteries. This investment reflects Ford’s long-term commitment to the Indonesian market and its drive to secure key materials for EV production.
The Indonesian Return of Ford and Market Potential
Following a six-year absence, Ford has been back in Indonesia since 2022, cooperating with Bangkok-based RMA Group. The car manufacturer is currently selling the Ranger pickup truck and Everest SUV in the region, both Thai-made, with deliveries adding up to 664 units so far this year.
Considering that this is an entry amount of some modest importance, focusing on the manufacture of electric vehicles and investing in a factory will be worth the wait for the EV maker.
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