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Ministry of Industry accelerates the lithium battery industry ecosystem for electric vehicles

24 June 2021 17:41

JAKARTA - The Ministry of Industry continues to encourage the acceleration of the development of battery-based electric motor vehicles and new and renewable energy (EBT). This step is in line with the government's vision which targets Indonesia to become a major player in the global automotive industry.

“The automotive industry is one of the priority sectors based on the Making Indonesia 4.0 roadmap. The main target is that Indonesia will become an export hub for motorized vehicles, both for fuel-based vehicles (internal combustion engines (ICE) and electric vehicles (EVs)," said Industry Minister Agus Gumiwang Kartasasmita in Jakarta, Thursday (24/6).

So far, the automotive industry has been able to make a significant contribution to the national economy. Indonesia's potential is currently supported by 21 automotive manufacturers, which in total have realized an investment of IDR 71.35 trillion. The total production capacity reaches 2.35 million units per year, by absorbing 38 thousand direct workers and more than 1.5 million people working along the value chain of the automotive industry.

"Demand for EVs in the world is estimated to continue to increase and will reach around 55 million units by 2040. This growth will certainly encourage an increase in the need for lithium ion (LiB) batteries," explained the Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) of the Ministry of Industry, Taufiek Bawazier

Currently, there are nine companies in the country that support the battery industry. The five companies provide raw materials, including pure nickel, pure cobalt, ferrous nickel, and mixed hydroxide precipitates. The other four companies are battery manufacturers.

The battery development will also be directed to support the government's renewable energy program, one of which is through solar energy. Batteries that are included in the solar energy ecosystem will encourage the adoption of renewable energy as well as spur the growth of the solar cell industry that already exists in the country. (LM)

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