Indonesia’s battery manufacturing capacity is scaling rapidly as the country leverages its nickel resources to capture greater value in the electric vehicle supply chain. ProSpace Indonesia’s EV Ecosystem Report indicates that battery production capacity will reach 35 gigawatt-hours annually by end-2025, a threefold increase from 2023.
South Korean, Chinese, and domestic companies lead development, with investment values in battery manufacturing and supporting industries totaling $12.7 billion since 2022. The Indonesia Battery Corporation’s first major facility in Central Java reached full production in March, while three additional plants are under construction.
“Indonesia is successfully implementing its strategy to move up the value chain from raw nickel exports to finished battery cells and packs,” notes Dewi Lestari, EV Industry Analyst at ProSpace. “The vertically integrated ecosystem from mining to cell production creates significant cost advantages.”
Technological focus remains primarily on nickel-based lithium-ion batteries, with research into sodium-ion and solid-state technologies advancing through university-industry partnerships. Battery recycling capacity is developing in parallel, with three facilities now operational.
Electric vehicle production within Indonesia continues to expand, with 78,000 units manufactured in 2024, more than double the previous year’s output. Domestic sales account for 59% of production, with the remainder exported primarily to Southeast Asian markets.
Challenges include ensuring environmental standards in the upstream supply chain and developing specialized workforce capabilities, issues being addressed through certification programs and targeted educational initiatives.
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