Energy and Mineral Resource Minister Arifin Tasrif said he has not coordinated with Industry Minister in regards with the plan to regulate the types of battery used by electric cars, including the high profile Lithium Ferro-Phosphate (LFP) battery.
“I have not coordinated [with Industry minister] as yet,” Arifin said on Friday, February 16,2024.
The government’s efforts to downstream nickel, especially from limonite ore into electric car batteries, are threatened by widespread use of Lithium Ferro-Phosphate (LFP) batteries. Even these LFP batteries are widely used by electric cars that have been hitting the roads in Indonesia. Some electric car brands that use LFP batteries include Chery Omoda E5, Wuling BinguoEV and Air ev, BYD, and MG 4 EV and MG ZS EV.
“But companies that use LF, like Wuling and BYD, have already entered the Indonesian market and taken over Tesla’s market… They’ve made millions. Our problem is that Indonesia has not developed the nickel lithium battery, that’s what should be developed downstream,” Arifin said.
He said that the massive use of LFP batteries will not hit hard Indonesian nickel industry because the market for electric vehicle and the conversion of fossil fuel-based vehicle into EVs are still huge. Indonesia currently has 24 millions cars and 120 millions two-wheelers.
“It will be left to the consumer, whether to use LFP or NMC (Nickel Manganese Cobalt),” he explained.
The most important thing, Arifin said, the government could encourage the reduction of carbon emmision and Indonesia’s dependence on fossil fuel. On the other hand, Indonesia needs to encourage the industrialization of mineral resources in order to make electric battery production.
“Indeed, the ecosystem is unique, what can we do if we do not have the electric car and motorbike? Now there are Hyundai, Wuling and BYD entering the electric car market. BYD has collaborated to make lithium nickels batteries in collaboration with Antam.” he said.
