Electric Vehicle Manufacturers Urged to Shift to Nickel Batteries

Jakarta, 5 August 2025 – The government is encouraging regulations requiring electric vehicle (EV) manufacturers in Indonesia to adopt nickel-based batteries, as most batteries currently in use are lithium-based. This was conveyed by Deputy Minister of State-Owned Enterprises (SOEs) Kartika Wirjoatmodjo after the International Battery Summit 2025 in Jakarta on Tuesday, 5 August 2025.

“Gradually, we are also pushing regulations for EV plants in Indonesia, so that car manufacturers will also shift from lithium-based to nickel-based batteries,” Kartika said, as quoted by Antara.

According to him, SOEs have already entered the EV battery sector, including joint projects with CATL and Huayou. In addition, state-owned companies are also encouraging greater investment in the midstream industry.

“Currently, many plants operating in Indonesia are still using lithium-based technology. We would like support from other ministries to provide incentives for shifting to nickel-based batteries as well,” Kartika stated.

Kartika further mentioned that global demand for batteries is projected to reach 8,800 gigawatt hours (GWh) by 2040, with supply chains playing a vital role in meeting that demand.

He believes Indonesia can play a major role by securing raw material supplies, enhancing supply chain efficiency, and engaging in strategic cooperation and collaboration.

President Prabowo had previously inaugurated the integrated EV battery industry ecosystem project by the ANTAM-IBC-CBL consortium at the Artha Industrial Hills (AIH) area in Karawang on 29 June 2025.

The project is a collaboration between PT Aneka Tambang Tbk (Antam), Indonesia Battery Corporation (IBC), and the CATL, Brunp, and Lygend consortium (CBL). The EV battery industry is being developed across the entire value chain, comprising six sub-projects—five located in East Halmahera and one in Karawang.

As part of the National Strategic Projects (PSN), the total investment value reaches US$5.9 billion, covering an area of 3,023 hectares, with the potential to create up to 8,000 jobs, and the development of 18 infrastructure projects, including a multifunctional jetty.

The project is also designed to be environmentally friendly, making use of a mix of energy sources such as a 2x150 MW coal-fired power plant, an 80 MW gas-fired power plant, a 30 MW waste heat recovery facility, and 172 MWp of solar power—including 24 MWp at the Karawang plant.

Source: Tempo.co