Video: As EVs Using Non-Nickel Batteries Proliferate, Is Indonesia's Ambition to Become an EV Battery King Safe?

Jakarta, CNBC Indonesia - Professor Evvy Kartini of BRIN and Founder of the National Battery Research Institute (NBRI) stated that Indonesia’s efforts to achieve its grand ambition of becoming a global player in the electric battery industry are moving forward. This progress is supported by the construction of electric vehicle (EV) battery factories, underpinned by the country’s large nickel reserves, which must undergo downstream processing to become high-value raw materials for EV batteries. Strengthening the upstream-to-downstream chain is also crucial to ensure that the production of battery raw materials through to downstream products has a clear market. However, several challenges confront Indonesia’s EV battery development. One significant issue is the influx of EVs entering Indonesia that use non-nickel-based batteries, specifically Lithium Iron Phosphate (LFP) batteries, which do not align with the nation’s nickel downstreaming programme. Consequently, regulations and efforts are needed to promote the use of nickel-based vehicles, namely those using NMC (Nickel Manganese Cobalt) or NCA (Nickel Cobalt Aluminum) battery types. Professor Evvy Kartini also highlighted the urgency of strengthening upstream nickel investment to add value to nickel ore, transforming it into materials for EV batteries. Furthermore, the government needs to develop an EV battery recycling industry to ensure sustainability. Evvy also mentioned the importance of Indonesia building local EV factories with technological mastery, thereby increasing the local content of electric vehicles.