In December 2024, Indonesia announced the completion of construction of the country's first large-scale lithium battery factory, and plans to start formal operations in 2025. The project is an important part of Indonesia's strategy to promote the development of the electric vehicle (EV) industry, aiming to utilize its abundant nickel resources to occupy a key position in the global EV supply chain.Experts are generally optimistic about Indonesia's potential in the electric vehicle industry chain. (Photo/Reproduced from Pexels)
Indonesia has the world's largest reserves of nickel ore, an important raw material for making lithium batteries. Against the backdrop of rapid growth in the new energy vehicle market, the Indonesian government has increased its investment in mineral resource processing and industrial chain upgrading. The country has established partnerships with companies in China, Japan and South Korea to jointly invest in battery production facilities, and has attracted the attention of several international companies including Tesla.
However, Indonesia's plans face challenges. First, environmental organizations have expressed strong concerns about the ecological damage caused by nickel mining and called on the government to adopt a more sustainable development approach. In addition, how to improve technology and ensure product quality in the global market competition is also a major challenge.
Despite this, experts are generally optimistic about Indonesia's potential in the electric vehicle industry chain. With the rapid growth in demand for electric vehicles, Indonesia is expected to become a major supplier of battery production to the world within the next decade, providing more opportunities for economic integration in Southeast Asia.