Ministry of Industry Reveals EV Battery Downstreaming Will Only Begin in 2 Years

KatadataOTO – Although electric vehicle sales in Indonesia are increasing, most of the batteries used are still imported from abroad. This has become a concern because this component is the most important part of an EV.

Therefore, the government has been working to enable domestic battery production. However, the downstream processing of vehicle batteries still requires a considerable amount of time.

Setia Diarta, Director General of Metal, Machinery, Transportation Equipment, and Electronics Industries (ILMATE), revealed that it will still take about two years to fully implement battery downstreaming.

“So, perhaps in the next two years, we will start to see downstream battery production originating from Indonesia itself, primarily nickel-based batteries,” he said, as reported by Antara (05/11).

Photo : Special

He revealed that efforts are continuously being made to encourage battery downstreaming. This commitment can be seen in the presence of factories from several consortiums that are currently under construction in Karawang.

Once construction is complete and production begins, it is hoped that electric vehicle manufacturers will be able to use them. This will increase the Domestic Component Level (TKDN) and the competitiveness of the national industry.

It should be noted that Indonesia aims to become a major player in the EV battery industry. The government is working to secure the supply of raw materials, improve supply chain efficiency, and engage 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.

Photo : Carscoops

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.

This commitment is crucial because the global demand for electric vehicle batteries will continue to increase. By 2040, the market is projected to reach 8,800 gigawatt-hours (GWh), making the supply chain's role in meeting this demand essential.