Government Begins Preparing Recycling Ecosystem for Electric Vehicle Batteries

The Indonesian government is starting to prepare the management of battery electric vehicles based on battery (KBLBB) as part of a national electric vehicle (EV) ecosystem. Sunandar, Assistant Deputy for Electricity Development and Geology at the Coordinating Ministry for Economic Affairs, said that used batteries are a key concern to ensure the EV ecosystem does not stop at sales and the construction of charging infrastructure.

He noted that the government is currently studying various schemes for processing batteries, from reuse (second life) and recycling to the possible implementation of a battery passport. “We are now looking at how to process the batteries sustainably so that the ecosystem is complete,” he said.

He explained that attention to battery processing has emerged because the use of electric vehicles is expected to continue to rise in the coming years. On the other hand, the average lifespan of electric vehicle batteries is around eight to ten years. With the rapid growth of electric vehicles, battery waste is projected to rise towards the end of this decade. “It is estimated that by 2030 there will be around 57,000 tonnes of batteries that have reached the end of their life,” Sunandar said.

Therefore, the government is preparing a range of options to ensure that electric vehicle batteries retain economic value after they are no longer used in vehicles.

Sunandar also said the government is open to the possibility of shifting electric vehicle incentives to the battery processing sector when the national EV industry ecosystem has matured further. “Incentives in the future may need to be shifted there,” he said. “Incentives are like subsidies to remote areas. Once the market is formed, subsidies for the purchase of units may no longer be necessary,” Sunandar added.

At present, the government assesses that the national EV ecosystem is beginning to develop, from vehicle production to battery components and charging infrastructure. The number of SPKLU (public charging stations) has reached around 5,000 units, while battery-swapping stations are approaching 3,000 across Indonesia.

“In the future, incentives for vehicles, electricity provision, or the industry could be shifted towards battery processing. Perhaps something like that,” he said.