Indonesia Needs to Increase Battery Production Capacity

Managing Director of Energy Shift Institute Putra Adhiguna assessed that Indonesia needs to increase its battery production capacity, as it is estimated that it will only have 10 gigawatt hours (GWh) or less than 0. 4% of global battery production capacity by 2024.

“The Energy Shift Institute estimates that Indonesia will only have 10 gigawatt-hours (GWh) or less than 0. 4% of global battery production capacity, 2,800 GWh,” Putra said, as reported by Antara, Friday, February 9, 2024.

According to Putra, the added value of Indonesia’s nickel products ranges from two to 11 times that of its raw products. However, this value is still far below the added value which is more than 60 times if it reaches battery production.

Putra continued, that the policy construction aims to improve the competitiveness of Indonesian nickel rests on the promise of developing the battery and electric vehicle industries.

Semi-Finished Exporters

Unless Indonesia’s battery production capacity is increased, Putra believes Indonesia will only shift from an exporter of nickel products for stainless steel to an exporter of semi-finished products for the battery industry.

“It is important for the various parties involved not to underestimate the scale of future growth because the world’s battery-based electric motor vehicle revolution has just entered its early stages,” he said.

Regarding the rapid growth of nickel-free batteries and the debate over the future of nickel, Putra said that the global demand for nickel for batteries is likely to continue to soar.

The increase, he said, could occur along with the rate of adoption of battery-based electric motor vehicles despite the presence of alternative technologies. “It is important to note that in a fast-growing sector, absolute growth figures are more important than market share,” Putra said.

Apart from nickel, Putra believes that what often goes unnoticed is the increase in cobalt production by Indonesia as the second-largest cobalt producer in the world. 

“This further emphasizes the importance of optimal natural resource management,” he said.

Image source: Medcom / AFP


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