Indonesia Aims to Build Complete Electric Vehicle Battery Industry Chain
On Wednesday, the Indonesian government announced at the Korea-Indonesia Economic Partnership Forum that it is opening up investment opportunities worth up to $121 billion to build an electric vehicle battery ecosystem. Officials from Indonesia's Ministry of Downstream Industries and Investment stated that the country possesses four major battery raw material resources: nickel, bauxite, manganese, and copper. It is currently the world's largest nickel producer, accounting for approximately 42% of global supply. The government plans to rank among the top five global electric vehicle battery producers by 2045, aiming to establish a complete industrial chain from mineral raw material supply to final battery assembly. Officials stated that processing nickel ore into electric vehicle batteries can increase value by 67 times, and a localized industrial ecosystem helps reduce export taxes and international logistics costs.
Nickel Ore Processing Can Increase Value by 67 Times
Official data shows the long-term downstream development strategy is expected to drive total investment to $618 billion, increase total export value to $857 billion, and create over 3 million jobs. Currently, Indonesian investment is concentrated in the mining sector, totaling approximately 98.3 trillion Indonesian Rupiah (about $6.18 billion); plantation and forestry investment is 29.8 trillion IDR (about $1.67 billion); oil and gas industry investment is 17.6 trillion IDR (about $989 million).