Indonesia is strengthening its position as a hub for the electric vehicle battery industry with the presence of several major factories. One of the key projects is the electric vehicle battery cell factory in Karawang New Industry City (KNIC), a collaboration between Hyundai Motor Group and LG Energy Solution. Operated by PT Hyundai LG Indonesia (HLI) Green Power, this factory began commercial production in April 2024 and was officially inaugurated in July 2024. Its presence marks a significant milestone for Indonesia in the Southeast Asian electric vehicle ecosystem, given the critical role of batteries as a key component in electric vehicles. Another electric vehicle battery cell factory will soon be established in KNIC, further solidifying the area as Indonesia's main center for battery cell production.

Additionally, the government has designated four regions as key hubs for the development of the electric vehicle battery industry: Morowali in Central Sulawesi, Weda in North Maluku, Konawe in Southeast Sulawesi, and Pomalaa in Southeast Sulawesi. These areas were selected due to their abundant nickel reserves, which serve as the primary raw material for battery production.

With these initiatives, Indonesia has the potential to become a major player in the global electric vehicle battery industry. The government continues to encourage foreign investment and technological advancements to accelerate the development of an integrated electric vehicle ecosystem. This strategy not only enhances the added value of domestic natural resources but also supports the goal of clean energy transition and global carbon emission reduction.

Source: CNBC.com