Ready to Dominate the Electric Vehicle Battery Industry, Here Are Indonesia’s Strengths!

Ready to Dominate the Electric Vehicle Battery Industry, Here Are Indonesia's Strengths!
Ready to Dominate the Electric Vehicle Battery Industry, Here Are Indonesia's Strengths!

Indonesia is steadily advancing towards establishing a robust electric vehicle (EV) industry ecosystem. Beyond producing vehicles, Indonesia is also gearing up to dominate the electric vehicle battery industry as well. The Ministry of Energy and Mineral Resources (ESDM) has laid out the nation’s strategic plans to harness its potential in this burgeoning sector.

Agus Tjahjana, Special Staff to the Minister of Energy and Mineral Resources for Accelerating the Development of the ESDM Sector Industry, emphasized that Indonesia is committed to building a complete supply chain for EV batteries, covering all stages from raw materials to end products.

“We are currently processing nickel ore into nickel and cobalt sulfate, essential components for EV batteries. The next crucial steps involve developing battery precursors, cathodes, battery cells, and the batteries themselves. Given that we already have the infrastructure for charging and recycling batteries, these steps are vital,” stated Agus in his announcement on Thursday, May 23, 2024.

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Indonesia hosts nine companies engaged in processing nickel ore into nickel and cobalt sulfate. Out of these, four companies are operational, three are under construction, and the remaining two are in the feasibility study phase. This industrial groundwork is pivotal for the country’s ambition to lead in EV battery production.

“In Karawang, our four-wheeled EV battery industry has begun operations with a capacity of 10 GWh this month,” Agus added, highlighting the significant progress already made.

Agus also pointed out that a strong charging infrastructure is crucial for supporting the EV ecosystem. As of April 2024, Indonesia has established 1,566 charging stations and 1,772 battery swap stations. The government has set ambitious targets to expand this infrastructure, aiming to have 48,118 charging stations and 196,179 battery swap stations by 2030.

The Secretary General of the Ministry of ESDM, Dadan Kusdiana, shared the government’s vision for widespread EV adoption. “We are targeting to have 2 million electric cars and 13 million electric two-wheelers on the road by 2030,” Dadan declared during the IEA’s 9th Global Conference On Energy Efficiency (GCEE), as quoted on Thursday, May 23, 2024.

To meet these targets, the Ministry of ESDM is expediting the development of the necessary infrastructure. “The Indonesian government has set ambitious goals for EV adoption. We are dedicated to achieving these targets by 2030, which includes not only the vehicles but the entire supporting ecosystem,” Dadan emphasized.

This comprehensive approach aims to position Indonesia at the forefront of the global EV industry, especially in electric vehicle battery industry, leveraging its rich natural resources and strategic initiatives to build a sustainable and competitive electric vehicle ecosystem.