Indonesia breaks ground on first renewable energy-powered EV battery factory


JAKARTA (Xinhua) – Indonesia on Saturday inaugurated its first electric vehicle (EV) battery factory which will operate entirely on renewable energy at the Neo Energy Morowali Industrial Estate in Central Sulawesi.

Coordinating Minister for Economic Affairs Airlangga Hartarto said that the factory was part of the critical minerals downstream policy aimed at boosting national economic competitiveness, improving public welfare and utilising environmentally friendly technology.

“Successful downstream processing of nickel has significantly boosted the export value of nickel derivatives, rising from USD4.31 billion in 2017 to USD34.44 billion in 2023,” Airlangga said at the event.

With abundant mineral resources especially nickel, Indonesia holds substantial potential for EV battery production, with an estimated annual capacity of 210 GWh. The factory’s high-pressure acid-leaching smelter will process nickel ore into mixed hydroxide precipitate (MHP), a key material for EV battery cathodes, adding 120,000 tons of MHP to the country’s production capacity each year.

The Investment Ministry revealed that as of June 2024, the total investment in nickel downstream activities, particularly smelter and EV battery factory development, has reached USD30 billion in the country.