Published on 09/08/2024 at 08:34 GMT+7 Reading time
A partnership between Indonesia-Singapore has secured US$1 billion (Rp15.9 trillion) in investment in the renewable battery sector bolstering the supply chain.
This influx of capital, facilitated in the partnership between the Indonesian and Singaporean governments, is set to bolster the supply chain for Solar Power Plants (PLTS) and potentially fuel the production of Lithium Ferro Phosphate (LFP) batteries for electric vehicles (EVs).
Rachmat Kaimuddin, Deputy for Infrastructure and Transportation at the Coordinating Ministry for Maritime Affairs and Investment, said two major battery manufacturers, Gotion High-Tech Co. Ltd. and REPT Battero Energy Co. Ltd., have shown interest in producing LFP batteries in Indonesia.
However, it remains uncertain whether these companies will focus solely on EV batteries or diversify their production.
LFP batteries are commonly used in EVs like those produced by BYD and Wuling, which are prevalent in Indonesia. These batteries, which do not require nickel, are advantageous in a country that boasts the world's largest nickel reserves. Still, Indonesia continues to prioritize nickel downstreaming to support the broader EV battery industry.
Indonesia also aims to develop Nickel-Manganese-Cobalt (NMC) batteries, known for their higher energy density and faster charging capabilities, providing a lightweight and efficient option for EVs.
Indonesia has recently become the first country in Southeast Asia to produce EV battery cells following the recent launch of PT Hyundai LG Indonesia Green Power's operations. This facility, with a production capacity of 10 gigawatt-hours, represents a US$1.1 billion investment.
Currently, Indonesia hosts 59 electric motorcycle manufacturers, five electric car producers, and one electric truck manufacturer, reflecting the country’s growing role in the global EV industry.
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