Minister of Industry Confirms EV Battery Production Won't Solely Rely on LG

KatadataOTO – Agus Gumiwang Kartasasmita, Minister of Industry, has confirmed that LG's withdrawal from the electric vehicle battery project will not have a significant impact. This is because several companies are already making similar products.

Thus, the development process for electric vehicles is believed not to experience any slowdowns or delays.

“In a large-scale project, a change of investors is common. The accelerated development of the electric vehicle ecosystem in Indonesia is proceeding as planned," explained the Minister of Industry, as quoted by Antara (25/04)

He revealed that there are currently two companies producing EV batteries. They are PT Industri Ion Energisindo and PT Energi Selalu Baru.

Photo : Wuling

PT Industri Ion Energisindo can produce 10,000 batteries per year with an investment of IDR 18 billion. Meanwhile, PT Energi Selalu Baru has a larger capacity of 12,000 batteries per year with an investment value of IDR 15 billion.

Then there is also a battery cell industry for electric cars, namely PT HLI Green Power. The company is a consortium between Hyundai Group and LG.

The production capacity in the first phase is 10 GWh with a total investment reaching USD 1.1 billion or IDR 18.5 trillion. The company can supply 150,000 to 170,000 electric vehicle units.

Next is PT International Chemical Industry, which has a production capacity of 100 MWh per year, equivalent to 9 million battery cells. Its total production capacity target is 256 MWh per year or 25 million battery cells.

Photo : Yonhap

Next, there is another battery pack producer, PT Gotion Green Energy Solutions Indonesia. They have invested USD 8.7 million or IDR 146.8 billion with a production capacity of 17,952 units per year.

"The development of the electric vehicle ecosystem in Indonesia continues to grow with a capacity that exceeds market development. This is driven by various strategic policies from the government, including ease of doing business, roadmap development, and optimization of the domestic component level (TKDN)," concluded the Minister of Industry.