VinFast Responds to Move for Higher Incentives for Nickel Battery EVs

VinFast has responded to government discussions about differentiating the incentive scheme for battery-based electric vehicles (BEVs) according to the type of battery used. VinFast Indonesia Chief Executive Officer Kariyanto Hardjosoemarto said the company welcomed the plan, viewing it as evidence of the government’s seriousness in accelerating the transition from ICE vehicles to EVs. ‘First of all, our response is to thank the government. Because with these incentives, it shows the government’s seriousness to transition from ICE to EV,’ he said. ‘With the transition to EVs, it will certainly reduce the amount of subsidies.’ Regarding the plan to offer larger incentives for electric vehicles with nickel-based batteries, Kariyanto said he understood the government’s policy direction. ‘After all, Indonesia has a large nickel reserve and wants to optimise its utilisation in the domestic EV industry. We also understand the rationale for differentiating batteries. Indonesia has an exceptionally large nickel resource, and naturally the government wants to optimise that,’ he added. ‘However, the EVs we are using currently are indeed powered by lithium iron phosphate (LFP) batteries. But that does not close the door to studies in the future for alternative battery materials,’ he said. ‘At the core, we will follow whatever the government can offer. When the incentives are really announced, we will consider the impact on price and so on.’ Earlier, the government was finalising a new incentive framework for BEV purchases in the second half of 2026. One option under consideration is offering higher subsidies for electric vehicles that use nickel-based batteries compared with non-nickel ones. ‘Nickel-based and non-nickel batteries will have different schemes. The calculations will be carried out by the Minister of Industry. Why are nickel-based subsidies higher? So that our nickel is used,’ said Purbaya.