Indonesia begins construction of first renewable energy electric vehicle battery factory

(MENAFN- IANS) Jakarta, September 15 (IANS) Indonesia has inaugurated its first electric vehicle (EV) battery factory that will run entirely on renewable energy at the Neo Energy Morowali industrial zone in Central Sulawesi.

Coordinating Minister of Economic Affairs Airlangga Hartarto said on Saturday that the plant is part of the country’s downstream key minerals policy, which aims to boost the competitiveness of the country’s economy, improve public welfare and use environmentally friendly technologies, Xinhua news agency reported.

“The successful downstream processing of nickel has significantly increased the export value of nickel derivatives, increasing from $4.31 billion in 2017 to $34.44 billion in 2023,” Airlangga said at the event.

With rich mineral resources, especially nickel, Indonesia has significant potential for producing batteries for electric vehicles, estimated at 210 GWh per year.

The high-pressure acid-leach smelter will process nickel ore into mixed hydroxide precipitate (MHP), a key material for electric vehicle battery cathodes, adding 120,000 tons of MHP per year to the country’s production capacity.

The Ministry of Investment revealed that by June 2024, total investment in nickel-related activities, particularly in smelters and the development of electric vehicle battery factories, had reached $30 billion in the country.

On May 6, Indonesian President Joko Widodo told media that the country’s first electric car battery factory would begin operations in June.

Speaking at the Indonesian Electric Vehicle Industry Association’s electric vehicle exhibition, called the Periklindo Electric Vehicle Show in 2024, he said the factory’s operations are a sign that an eco-friendly vehicle ecosystem is starting to take shape in the country.

The factory, said to be owned by PT Hyundai LG Industry (HLI) Green Power, is located in Karawang, West Java, has a maximum capacity of up to 10 GW per hour and has the capacity to produce 32.6 million batteries.

The Indonesian President announced that there are currently 59 electric vehicle manufacturers operating in Indonesia and that they plan to expand further.

According to him, with the current infrastructure, Indonesia can produce up to 1.6 million electric motorcycles per year.

However, with 100,000 new electric motorcycles now produced, Indonesia sees room to grow this industry.

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