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Indonesia’s first EV battery factory set to operate in June

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Indonesian President Joko Widodo attended Periklindo Electric Vehicle Show on May 3. (Photo: Joko Widodo's facebook)

Indonesian President Joko Widodo has announced that the first electric vehicle (EV) battery factory in the country will start operating in next month.

Speaking at the 2024 Periklindo Electric Vehicle Show, he emphasized that the factory’s operation signals that the domestic environmentally friendly vehicle ecosystem is starting to form in Indonesia.

The factory, owned by Hyundai LG Industry (HLI) Green Power, is situated in Karawang, West Java. It boasts a maximum capacity of up to 10 GWh and can produce 32.6 million battery units, which could potentially power approximately 150,000 electric vehicles.

Joko Widodo said that Indonesia presently hosts 59 electric vehicle manufacturers, with further expansion plans underway. According to him, with current infrastructure, the country can make up to 1.6 million electrical motorbikes annually. However, the production of new electric motorbikes is 100,000 motorbikes now, so sees room to develop the industry.

Indonesia had previously announced that the first EV battery factory would commence operations in April, but it has now been delayed by two months.

The Ministry of Investment said at the time that mass production would mark a new chapter in the history of Indonesia's automotive industry and signify the benefits of the downstreaming policy.

Tina Talisa, the ministry’s Special Staff, said, “Downstreaming is a way to create added value from abundant natural resources in Indonesia, one of which is nickel.” She also highlighted that the massive production of EV battery cells would make Indonesia the first country to produce EV battery cells in Southeast Asia to use the new technology from LG.

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