The government is putting all efforts to make Indonesia one of the world’s leading players in the electric vehicle (EV) industry as it continues to develop a fully integrated EV battery ecosystem − from upstream to downstream.

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia reveals that a massive 100 GW solar power plant is currently under development to support the country’s transition to cleaner energy and to serve as a major market for domestically produced EV batteries.

“Huayou will soon commence operations in collaboration with Antam and IBC, with a total investment of approximately US$8 billion. The project is targeted for completion by 2027, positioning Indonesia as one of the first countries to establish a fully integrated EV battery ecosystem,” Bahlil said, as quoted by Antara, on Wednesday, August 6, 2025.

This initiative aligns with the national roadmap toward achieving net zero emissions (NZE) by 2060 and supports President Prabowo Subianto’s directives on industrial downstreaming and accelerating the development of the EV sector.

Bahlil emphasized that utilizing renewable energy sources for electricity generation is a government priority, offering greater opportunities for the domestic battery industry.

“We want all EV batteries to use Indonesian-made components. This is a massive market, and we will push for it as part of our energy transition and sovereignty,” he stressed.

In previous reports, the government has encouraged EV manufacturers to adopt nickel-based batteries, leveraging Indonesia’s status as one of the world’s top nickel producers.

However, shifting to nickel-based technology poses challenges, as many electric vehicles currently rely on lithium-based batteries.

“We are gradually introducing regulations to encourage EV manufacturers in Indonesia to transition from lithium-based to nickel-based batteries,” Kartika Wirjoatmodjo, Deputy Minister of State-Owned Enterprises, said.

Kartika added that state-owned enterprises (SOEs) are now actively involved in the battery industry, including joint projects with global players like CATL and Huayou.

“Many existing plants in Indonesia still use lithium-based systems. We need support from various ministries and agencies to provide incentives for transitioning to nickel-based batteries,” he concluded.

This comprehensive approach is expected to strengthen Indonesia’s position in the global EV supply chain and solidify its role as a manufacturing hub for future green technologies.