The Coordinating Ministry for Maritime and Investment Affairs noted that approximately US$1 billion in investments has flowed into the domestic renewable energy battery sector, part of which was aimed at producing Lithium Ferro Phosphate (LFP) batteries for electric vehicles (EVs). 

The investments resulted from a collaboration between the Indonesian and Singaporean governments in the solar power plant (PLTS) supply chain. The batteries will be used by the PLTS to store excess power generated during the day. Some battery manufacturers may also produce batteries for EVs. 

"There are battery manufacturers entering the market capable of producing LFP batteries, namely Gotion High-Tech Co Ltd and REPT Battero Energy Co Ltd," said Deputy for Infrastructure and Transportation Coordination at the Coordinating Ministry for Maritime and Investment Affairs Rachmat Kaimuddin during the Katadata SAFE 2024 event on Thursday, August 8. 

Rachmat mentioned that it is still uncertain whether these battery manufacturers will produce batteries specifically for EVs. However, the government aims for the domestic EV battery industry to produce two types of batteries: LFP and Nickel Manganese Cobalt (NMC). 

Most electric vehicles in Indonesia currently use LFP batteries, which do not contain nickel. Examples of EVs using LFP batteries include those from BYD and Wuling. 

Despite Indonesia holding the largest nickel reserves globally, the country has been focusing on nickel downstreaming to produce batteries for electric vehicles. 

Previously, Rachmat highlighted that NMC batteries have the advantage of being more energy-dense, making them lighter and faster to charge. 

"With the same dimensions and weight, they consume more electricity and remain stable," he said during the "Course to Zero (Emissions)" workshop organized by the International Council on Clean Transportation and Katadata Green in Jakarta on Wednesday (February 28). 

Indonesia recently became the first EV battery cell producer in Southeast Asia, with PT Hyundai LG Indonesia Green Power starting operations last month. The plant currently has a production capacity of 10 gigawatt hours, following an investment of $1.1 billion. 

Presently, there are 59 electric motorbike manufacturers, five electric car manufacturers, and one electric truck manufacturer investing in Indonesia. 

Original article here

This content is published in partnership with Katadata