Why is Indonesia a key player in lithium-ion battery manufacturing?

Moreover, Indonesia’s leadership in nickel reserves, a key material for lithium-ion batteries, positions it as a global player in battery manufacturing. Investments from companies like CATL, LG Energy Solution, and Hyundai are driving the cost-effectiveness and availability of battery solutions, creating a favorable ecosystem for BESS development.

Why is Hyundai launching a battery plant in Indonesia?

Hyundai and LG Energy Solution have opened a $1.1bn battery cell plant in Indonesia as the south-east Asian country works to build an electric vehicle ecosystem. The launch of the country’s first battery plant on Wednesday is part of Indonesia ’s push to move up the global EV supply chain.

Could Indonesia become a battery production hub?

Because Indonesia has the largest reserves of nickel ore in the world, the idea was that if the government forced companies to refine the ore locally, Indonesia could position itself as a battery production hub and key link in global clean energy supply chains.

Why did Indonesia start a battery refinery?

It was always to produce batteries, and to establish a foothold in the production of electric vehicles. Locating the refineries in Indonesia was simply the first step in a long-term plan to position Indonesia as a global battery and clean energy production hub.

Can Indonesia become an EV battery producer and exporter?

Indonesia wants to develop an integrated electric vehicle (EV) supply chain and become an EV battery producer and exporter. Southeast Asia’s largest economy has the ambitious goal to make batteries with a capacity of 140 gigawatt hours (GWh) in 2030, which is nearly as much as global EV battery production in 2020.

Who is building Indonesia's first EV battery plant?

This includes a joint venture between LG and Hyundai to build Indonesia’s first EV battery plant, which opened last year. Another production facility is being co-developed between Chinese battery-maker CATL and the Indonesia Battery Corporation, a consortium of big state-owned mining and energy firms.