South Korea and Indonesia have agreed to cooperate in the creation of an ecosystem for the electric vehicle(EV) and battery industries based on the agreements reached at the three summits of their leaders.

The Ministry of Trade, Industry and Energy said that the two sides reached the agreement on Monday in the second meeting of the South Korea-Indonesia economic cooperation committee at a hotel in Seoul.

In the meeting, the two countries agreed to continue cooperation in supply chains for Indonesia’s goal of producing EVs and batteries, and to expand collaborative efforts in clean energy fields such as battery recycling and small modular reactors.    

The agreement included a continuation of cooperative investments in EV and battery production in the Southeast Asian country in order to jointly advance in the EV market regionally and globally.

The sides also agreed to expand investments to strengthen the supply chain of key minerals for batteries such as nickel, which is abundant in Indonesia.  

The two countries will strengthen cooperation for carbon neutrality through the establishment of production facilities for green hydrogen and solar photovoltaic power generation facilities, while also pursuing joint projects to reduce global greenhouse gas emissions.