Indonesia should set up lithium ion battery factory: Expert

Published on 06/02/2024 at 10:19 GMT+7 Reading time

As the world’s largest owner of raw materials and resources, Indonesia should have lithium battery factory, an expert said.

Harta Haryadi, a researcher at the Center for Mining Technology Research at
The National Research and Innovation Agency (BRIN) said that based on 2023 data of the geological agency, Indonesia has 17 billion tons of nickel resources and 5 billion tons of nickels reserves.

“Of the world’s 10 biggest nickel producers, only Indonesia that does not have a single lihtium factory. All Indonesian nickel products are exported to China," Haryadi said in Jakarta on Monday, February 5, 2024.

Currently, Indonesia has 14 battery manufacturers , but all of them are still producing alkaline batteries and carbon cells battery. The alkaline battery factories are among others Centery Batery, Indomart, Energizer, GS Batery, Panasonic and ABC. It is unfortunate because Indonesia is rich in nickel, cobalts, and manganeses.

At the same time, the 10 world biggest lithium battery producers are controlled by China, Japan and South Korea. The three countries have no raw materials but they control world battery market. The top 10 lihtium battery factories are CATL, LG, Panasonic, Samsung, BYD Company, Toshiba, EVe, Manly, SVOTL and Tesla.

"There is not a single Lihium Battery Factory in Indonesia, the world’s largest resource and raw materials owner," Haryadi said.

“In the last 10 years, there have been so many discussions, seminars and talks held about building lithium battery factory. But not a single lihtium battery factory has been established," he added.

Currently, a lot of devices use lithium batteries, such as wall clocks, calculators, temperature measuring devices, electric car battery and electric motors battery.

“Electronic devices are used by 200 million Indonesians. Mobile phones in circulation using lithium batteries, no laptops are made in Indonesia," Haryadi said.

To solve the problem, the Center for Mining Technology Research at the National Research and Innovation Agency (BRIN) has a pilot project with Indonesia state-owned enterprise PT Bukit Asam to produce graphite or lithium battery anode materials from coals.

Muhamad Toha from Association of Indonesian Mining Proffessionals said Indonesia needed to learn from the development of wheat downstream industry. Despite the fact that Indonesia imports all of its wheat from Ukraine and Russia, Indonesia is a country that produces the most wheat-based food, including controlling 70 percent of instant noodles in African market.

"We have been succesful in downstreaming wheat whitout roadmap," Toha said.

In metal-based industry, Indonesia needs to think of how industry at the lowest level, including spoons, injections, and household appliances can be developed in Indonesia.

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