Threats to Indonesian Electric Vehicle Battery Industry: The Impact and Minister’s Appeal for Collaboration

CNN Indonesia

Saturday, 02 Sep 2023 20:50 WIB

The Ministry of Investment revealed threats coming from developed countries to the Indonesian electric vehicle battery industry. Illustration. (CNN Indonesia/Febri Ardani).

Jakarta, CNNIndonesia —

Deputy for Investment Promotion Ministry of Investment/ BKPM Nurul Ichwan reveals threats to the industry electric vehicle battery domestically.

He said the threat came from developed countries that did not have nickel sources like Europe. Nurul explained that currently Europe has the technology to recycle or recycle batteries.

He said that in the first years, batteries made outside of Europe, including Indonesia, entered those countries. The incoming battery also has a minimum recycle with a certain percentage.

Once you enter the blue continent, developed countries will take waste from used batteries resource or raw materials. Furthermore, these raw materials are processed into new batteries.

In other words, when the raw materials are sufficient, Europe will make its own batteries. This means that imports from Indonesia will decrease.

“When that time comes, it could be the import of whether the precursor, cathode, battery pack from Indonesia it may decrease,” Nurul explained on the sidelines of the 2023 Asean Business & Investment Summit in Jakarta, Saturday (2/9).

According to Nurul, this could happen in 2030 to 2040. To minimize the impact, he also appealed to Indonesia and ASEAN countries to work together.

This collaboration is carried out by creating a market ecosystem, including recycling technology together. That way, ASEAN will not depend on the markets of other countries, including Europe.

ASEAN, said Nurul, is part of a market that has independence. Starting from nickel, recycling, to electric vehicle battery factories.

“Well, like it or not, because if you only depend on market other people, we will be dictated to by them and we do not have the independence to try self-sustain with market himself,” he said.

(mrh/sfr)

2023-09-02 13:50:00
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