Government Encourages EV Companies to Use Nickel-Based Batteries

KatadataOTO – The government has affirmed its continuous push for electric vehicle manufacturers in the country to use nickel-based batteries. This is necessary because Indonesia is the world's largest nickel-producing country.

However, this step is certainly not easy because recently, electric cars have been using lithium-based batteries.

"Slowly, we are pushing for regulations to encourage electric car manufacturers in Indonesia to switch from lithium-based to nickel-based," said Kartika Wirjoatmodjo, Deputy Minister of State-Owned Enterprises, as reported by Antara (06/08).

He revealed that State-Owned Enterprises (BUMN) have already entered the EV battery industry, such as in joint projects with CATL and Huayou. They are also encouraging an increase in investment in this segment.

Photo : Nissan

“Because many factories currently operating in Indonesia are still lithium-based. We want support from other ministries to provide incentives for shifting to nickel-based batteries in Indonesia as well,” he then emphasized.

Not only that, he also stated that the global demand for electric vehicle batteries will continue to increase. By 2040, the market is projected to reach 8,800 gigawatt-hours (GWh), so the supply chain will play a crucial role in meeting this demand.

Indonesia is also expected to become a major player by securing raw material supplies, improving supply chain efficiency, and engaging in strategic cooperation and collaboration.

In fact, on June 29, 2025, President Prabowo inaugurated an integrated electric vehicle battery industry ecosystem. The project is a collaboration between PT Aneka Tambang Tbk (Antam), Indonesia Battery Corporation (IBC), and the CATL, Brunp, and Lygend (CBL) Consortium.

As part of the National Strategic Project (PSN), the investment value is very large. Reported by Antara, its value reaches 5.9 billion US dollars and covers an area of 3,023 hectares.

Photo : Carscoops

The potential for labor absorption is also quite large, up to 8,000 people, along with the development of 18 infrastructure projects, including a multifunctional pier.

This project is also designed to be environmentally friendly by utilizing a combination of energy sources such as a 2x150 MW coal-fired power plant, an 80 MW gas-fired power plant, a 30 MW waste heat power plant, and 172 MWp of solar power—including 24 MWp at the Karawang factory.