- Indonesia to complete $8B EV battery ecosystem by 2027.
- 100 GW solar project to support clean energy and the EV battery market.
- Government urges shift from lithium to nickel-based EV batteries.
The government is striving to establish Indonesia as a prominent player in the electric vehicle (EV) sector while it advances a comprehensive EV battery ecosystem − from production to distribution.
The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, announces that a substantial 100 GW solar power facility is being developed to aid the nation’s shift to cleaner energy and act as a significant market for locally manufactured EV batteries.
“Huayou will soon commence operations in collaboration with Antam and IBC, with a total investment of approximately US$8 billion. The project is targeted for completion by 2027, positioning Indonesia as one of the first countries to establish a fully integrated EV battery ecosystem,” Bahlil said, as quoted by Antara.
This effort is in line with the national plan to reach net zero emissions (NZE) by 2060 and reinforces President Prabowo Subianto’s instructions on industrial downstreaming and expediting the growth of the EV industry.
Bahlil stressed that using renewable energy sources for power generation is a government priority, providing more opportunities for the local battery industry.
“We want all EV batteries to use Indonesian-made components. This is a massive market, and we will push for it as part of our energy transition and sovereignty,” he stressed.
In earlier reports, the government has urged electric vehicle manufacturers to utilize nickel-based batteries, capitalizing on Indonesia’s position as a leading global nickel producer.
Nevertheless, the transition to nickel-based technology presents difficulties, since numerous electric vehicles are presently dependent on lithium-based batteries.
“We are gradually introducing regulations to encourage EV manufacturers in Indonesia to transition from lithium-based to nickel-based batteries,” Kartika Wirjoatmodjo, Deputy Minister of State-Owned Enterprises, said.
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Kartika mentioned that state-owned enterprises (SOEs) are currently engaged in the battery sector, participating in collaborative projects with international companies such as CATL and Huayou.
“Many existing plants in Indonesia still use lithium-based systems. We need support from various ministries and agencies to provide incentives for transitioning to nickel-based batteries,” he concluded.
This strategy aims to enhance Indonesia’s status in the international EV supply chain and reinforce its role as a production center for upcoming green technologies.