Indonesia set to become world’s largest battery producer

Construction of an industrial area in Kawasi, Obi, South Halmahera District of North Maluku, which will produce electric car battery, has entered its final stage (Photo: Antara)

Jakarta (VNA) - Indonesia should become the world's largest battery producer, with the government's plan to develop an electric vehicle environment in the country, said Investment Minister Bahlil Lahadalia, who is also head of the Coordinating Board of Investment (BKPM).

During a webinar on the prospects of the national battery industry on June 24, Lahadalia said Indonesia is known for its natural resource wealth, including wood, gold, fish, and coal, but it did not offer added value to the country, as several of them are exported in the form of raw materials.

The raw materials to produce battery for electric vehicles are nickel, manganese, and cobalt that are available in Indonesia.

In Europe, by 2030, 70 percent of vehicles in the region will have switched from fossil fuel to renewable energy. It will also be the case in some Asian and Latin America nations, including Indonesia, he stated.

The government has outlined some comprehensive measures to encourage investors to invest in Indonesia, he noted.

In its first move, the government has banned the exports of nickel ore since the end of October 2019.

The government has also offered various incentives, comprising tax holiday and the simplification of machinery import license to attract investors./.