3. Indonesia and iPhone assembler Foxconn have held talks over electric vehicle investment in the south-east Asian country, though the two sides differ on what was decided. Both sides in separate statements confirmed investment discussions took place in late October. Any such entry into Indonesia by Foxconn would be a huge boost for a country that aims to position itself as a main player in the global EV supply chain. Indonesia said on October 24 that Foxconn plans to build electric vehicles and batteries there, though the Taiwanese company stopped short of confirming that any such plan was made.

The talks come as Foxconn reaffirmed its commitment to the EV business, saying that it planned to turn its nascent auto segment into a $35bn business in five years. It is already building a production facility in Thailand with state-backed oil and gas company PTT to service south-east Asia, and plans to build EV factories in Europe, India and either North or South America by 2024.Earlier in October, Foxconn struck multiple deals worth $280m with US EV start-up Lordstown Motors to acquire its manufacturing plant in Ohio, which will become Foxconns first EV manufacturing base for the North American market.

The Taiwanese maker joins a long list of companies that have shown interest in investing in Indonesias nascent EV industry. These include the likes of Germany-based BASF, Tesla of the US and Chinas CATL. South Koreas Hyundai Motor Group and LG Energy Solution in September started construction on a $1.1bn EV battery plant in Indonesia, which is scheduled to begin production in 2024. Hyundai is also building an automobile factory nearby, with production expected to start next year.

Companies are particularly interested in Indonesia for its rich nickel reserves, a vital ingredient in EV batteries. Indonesia produced an estimated 760,000 tons of nickel in 2020 and has a further 21m tons of reserves, according to the US Geological Survey, more than anywhere else in the world in both categories. The country accounts for roughly 30 per cent of the worlds nickel production and about 22 per cent of global reserves and is critical to ensuring a stable supply of battery materials.

Archipelagic Indonesia wants to leverage its reserves by bringing in investment and becoming a pivotal cog in the global EV supply chain. It set up a state-owned battery holding company in March and said that in five years the country intended to have an integrated industry encompassing everything from upstream development, mining raw materials for EV batteries, to downstream the manufacturing of batteries and the vehicles themselves. To spur investment into nickel processing including refineries, the government also put into effect a ban on exports of unprocessed nickel ore in January 2020, two years earlier than expected.

Questions: (35pt)

1. Give a title to this passage. (5pt)

2. Why is Indonesia a key player in the EV industry? How does the country plan to play out its advantages? (10pt)

3. What are the advantages of China in the EV industry? What measures have been taken by the Chinese government to promote this industry? (10pt)

4. Do you believe the EVs will replace the fuel-powered cars in the future and why? (10pt)