Gaikindo Assesses Recommendation to Use Nickel-Based EV Batteries as Not Yet Effective

KatadataOTO – The government's call to encourage electric car manufacturers to use nickel-based EV batteries is considered not to be optimal. This is because each vehicle company has its own considerations and strategies.

According to the Association of Indonesian Automotive Industries (Gaikindo), the government's call needs to be reviewed. This is because the government must consider many factors, including the scale of economy.

“The call is good, but don't forget the most important factor is the scale of economy. If it's not economical, manufacturers will not want to invest here," said Kukuh Kumara, Secretary General of Gaikindo, as reported by Antara (08/08).

He acknowledged that the use of local raw materials like nickel can indeed increase the local content level (TKDN). But its application cannot be done arbitrarily on a car.

Photo : Courtesy

This is because the government also has to consider many things, including industry readiness and technological differences in each vehicle brand.

According to Kukuh, although raw materials like nickel are available, the battery production process still depends on complex technical aspects. Manufacturers also have their own trade secrets.

“It can't just be printed and used immediately. Battery performance is directly related to the technology of each brand,” he said.

Not only that, the production volume of electric vehicles in Indonesia is still relatively limited, so efforts to build a large-scale nickel battery ecosystem need to be based on realistic market potential.

Without a large production scale, battery production costs will remain high, making it difficult to compete globally. Besides the economic scale, he also highlighted the importance of investment in research and development (R&D).

Kukuh also cited China as a country that has successfully developed its EV industry due to strong support for R&D.

Nevertheless, he acknowledged that the idea of using domestic nickel batteries has great potential. This is because logistics costs would become more affordable.

Photo : Courtesy

However, he warned that every policy must take everything into account, as changes can disrupt the stability of the automotive industry.

“The main goal is to achieve zero carbon emissions, and this can be achieved in various ways. So, optimize what is already there while continuing to encourage local development gradually and reasonably,” he concluded.