Indonesia and India Explore Collaboration Opportunities in the EV Era

KatadataOTO – The government, through the Ministry of Energy and Mineral Resources (ESDM), is once again promoting commodity downstreaming as a strategy to increase the added value of natural resources in Indonesia.

It was explained that through downstreaming, Indonesia does not just export raw materials but products that have added value, thus contributing significantly to the national economy.

During the working visit of Indonesian President Prabowo Subianto to India, the Minister of Energy and Mineral Resources saw that India has great potential to support downstreaming in the coal sector and investment in critical minerals, especially nickel for the development of EV (Electric Vehicle) batteries.

“Cooperation in the nickel downstreaming sector is very strategic for both countries. Indonesia can become a production hub for electric vehicle batteries, while India plays a role as a key partner in the global supply chain,” said Bahlil Lahadalia, Minister of Energy and Mineral Resources, as quoted from his official statement on Monday (3/1).

Photo : Honda

It should be noted that India is a country with a large demand for energy. On the other hand, Indonesia has an abundant supply of nickel.

Based on data from the Ministry of Energy and Mineral Resources, as of 2023, Indonesia's nickel resources in the form of ore were recorded at 18.5 billion tons, while its reserves amounted to 5.3 billion tons.

This makes Indonesia the country with the largest nickel commodity reserves, equivalent to 23 percent of the world's reserves.

He emphasized that collaboration with India can help Indonesia accelerate its economic transformation and strengthen its position as a major player in the global supply chain.

“This policy not only brings economic benefits but also opens up space for strengthening domestic industry through technology transfer and increasing human resource capacity,” said the Minister of Energy and Mineral Resources.

Currently, PT HLI (Hyundai LG Indonesia) Green Power is mentioned as one form of nickel downstreaming. Their commercial electric battery production began in April 2024, for domestic needs and for export, including to South Korea.

Photo : TrenOto

PT HLI Green Power also involves a number of engineers from Indonesia who have been specially trained to be competent and skilled in assembling electric car battery cells.

In the first phase, the battery factory absorbed an investment of 1.1 billion USD or around Rp 18 trillion with a production capacity of 10 gigawatts per hour, consisting of 32.6 million battery cells for about 150 thousand electric vehicles.

Meanwhile, in the second phase, targeted for 2025, the production capacity at PT HLI Green Power can be increased to 20 gWh.