Tag: Nickel

  • Bahlil says nickel-to-cell battery chain is complete, eyes curbs on new smelters

    Bahlil says nickel-to-cell battery chain is complete, eyes curbs on new smelters

    Top image: NASA/JPL, NASA/METI/AIST/Japan Space Systems and U.S./Japan ASTER Science Team, Public domain, via Wikimedia Commons. NASA satellite view of nickel mining in Southeast Sulawesi.

    Indonesia now has a battery supply chain that runs all the way from nickel mines to finished battery cells, according to Bahlil Lahadalia, the coordinating minister for downstreaming and energy transition, who also serves as energy and mineral resources minister. In the same speech, however, he signalled that the government is reviewing whether new smelters making only semi-finished products should still be allowed, saying most of the industry is still stuck halfway up the value chain.

    Bahlil was speaking on Monday 2 November at the opening of the Minerba Convention and Exhibition (Minerba Convex) 2026 at JIExpo Kemayoran in Jakarta, the same event at which economic council official Septian Hario Seto laid out the 60% local-content target for EVs in 2027.

    “From mine to battery cell”

    According to Antara and JawaPos, Bahlil said Indonesia was one of the countries that had managed to build an integrated car-battery ecosystem stretching from mining to battery cells. He pointed to three battery facilities: a plant in the Indonesia Weda Bay Industrial Park (IWIP) in Central Halmahera, North Maluku; the Hyundai LG Indonesia (HLI) Green Power cell plant in Karawang, West Java, which has been operating since July 2024; and the joint venture between state miner Antam and China’s CATL, which he said President Prabowo Subianto would inaugurate in Karawang this month. IndoEVs reported last week that Prabowo is expected to open the CATL-IBC plant.

    Antara’s Indonesian service also quoted him as saying that the idea of an integrated battery ecosystem had been doubted when it was first presented in 2020, and that the United States now sources precursor and cathode material from Indonesia.

    Export figures: sources differ

    Bahlil used nickel exports to argue that halting raw ore exports had paid off, but the reports give different numbers. JawaPos, carrying Antara copy, says exports grew from US$3.3 billion in 2017 to US$40 billion in 2025, with US$25.96 billion recorded by the Directorate General of Minerals and Coal up to August 2026. Antara’s Indonesian report and Kumparan put the post-ban level at about US$34 billion, compared with US$3.3 billion in 2017–2019, without naming a year. The gap may reflect different years or definitions; the ministry has not clarified it.

    A rethink on smelters

    The more consequential part of the speech may be the warning about where processing has stalled. Bahlil said most downstream output was still at the intermediate stage, around 50–60% of the full value chain, and described the number of smelters as having “boomed”. Antara reported that the government is weighing whether smelters that produce only semi-finished goods should still be built, or should face further regulation.

    “What we need to push is the end product, so that semi-finished raw materials are not all exported abroad.” – Bahlil Lahadalia, quoted by Antara (translated from Indonesian)

    Tri Winarno, director general of minerals and coal, said the next phase should cover intermediate materials and components, including for the battery industry. Bahlil also stressed, as reported by Media Nikel Indonesia, that downstreaming must be “equitable”, with benefits reaching communities around mining areas, not only higher commodity value and state revenue.

    The review builds on the option of a moratorium on new semi-finished nickel smelters that Bahlil raised in October, and comes as some Chinese nickel producers weigh output cuts.

    What it means for buyers

    For drivers, a mine-to-cell chain matters mainly through local content rules. With the TKDN threshold for battery EVs set to rise to 60% next year, carmakers that can buy locally made cells, such as those from HLI or the CATL joint venture, should find it easier to qualify for incentives and keep prices competitive. Whether incentives should favour nickel-based cells over nickel-free LFP (lithium iron phosphate) batteries remains a point of debate. The environmental footprint of the nickel parks, many of which run on captive coal power, is another open question. Hyundai, whose cell plant Bahlil cited, is listed in our EV directory.

    Sources: Antara (English); Antara (Indonesian); Kumparan; JawaPos; Media Nikel Indonesia.

  • PEVS 2026 closes with 35,257 visitors as activists grade carmakers

    PEVS 2026 closes with 35,257 visitors as activists grade carmakers

    Top image: Polytron G3+ electric SUV. Photo: Turbo Time 6, CC BY-SA 4.0, via Wikimedia Commons

    The Periklindo Electric Vehicle Show (PEVS) 2026 closed at JIExpo Kemayoran in Jakarta on Sunday 1 November, with organisers reporting 35,257 visitors over four days. The figure was counted at 15:00 WIB, three hours before the doors shut, so the final tally may be slightly higher, Antara and Jawa Pos reported.

    The closing day also brought a reminder that the electric transition has critics as well as customers: a civil-society coalition used the show to hand carmakers a symbolic “report card” on their supply chains.

    Visitors, exhibitors and deals

    According to Antara, 45 exhibitors took part, spanning car and motorbike brands and the wider supply industry. Names on the floor included BYD, Chery, Hyundai, MG, VinFast, Wuling, Alva, Polytron, Selis and United E-Motor, while Transjakarta, MRT Jakarta and LRT Jakarta also had stands. Visitors could test-drive cars and test-ride motorbikes inside the venue, and cashback of up to Rp200 million was offered on purchases of two- and four-wheel EVs. (We covered the opening-day market data in PEVS 2026 opens as battery EVs reach 16.88% of the car market, and the motorbike price cuts in our report on Honda, Polytron and United discounts.)

    Periklindo chairman Moeldoko said the attendance showed a positive public response to EVs, praising visitors’ “enthusiasm that did not fade from the first day to the closing” (translated from Indonesian), as quoted by Jawa Pos. Rumpoko Hadi, director of co-organiser Dyandra Promosindo, said the numbers reflected growing interest in electric vehicles.

    Neither organiser published a transaction total at the close. Back in May, Moeldoko told Antara the show was targeting Rp500 billion in sales; the same report said the previous edition attracted more than 40,000 visitors. On those figures, this year’s provisional attendance is roughly 12% lower (our calculation), although the comparison is not like-for-like because the 2026 count stopped before closing time.

    Activists’ “report card” for carmakers

    On the final day, the Just EV coalition, which includes the groups Satya Bumi, CERAH and Enter Nusantara, unfurled a banner at the show reading “Automaker Accountability Report Card”, Suara.com reported. Citing analysis by the international campaign Lead the Charge, the coalition said 18 major carmakers each scored below 50% on supply-chain environmental impact, support for climate policy, and respect for the rights of indigenous peoples and workers. Suara did not list the brands or their individual scores. Lead the Charge’s 2026 leaderboard, published in March, put even its top-ranked company, Tesla, just under 50% overall, Ford Authority noted.

    The coalition’s concerns centre on battery minerals. It linked nickel and cobalt mining to pollution and land conflicts in West Papua, North Maluku, Central Sulawesi and North Kalimantan, and pointed to the heavy reliance of nickel processing on coal-fired power, an issue we examined in our report on captive coal at nickel parks. It also argued that hybrids, which still burn fuel, keep adding to transport emissions.

    “The transition we want is not merely a change of technology.” Tamimah Ashilah, Satya Bumi (translated from Indonesian), via Suara.com

    Agung Budiono, executive director of CERAH, said EV makers should set standards for raw materials produced without fossil energy, while Enter Nusantara coordinator Reka Maharwati said the report card voiced young people’s concerns about green claims in the energy transition.

    What it means for buyers

    • Show discounts may linger: dealers often extend exhibition offers for a short time after a show ends. If you missed PEVS, ask whether the show price or cashback is still available before paying list price.
    • Battery chemistry and sourcing are becoming a talking point: as policy debates over nickel versus LFP batteries continue, expect more questions about where battery materials come from. Buyers who care can ask brands for their supply-chain or sustainability disclosures.
    • Compare brands in one place: many PEVS exhibitors, including Polytron, are listed in our EV directory for Indonesia.

    Sources: Antara (2 Nov 2026); Jawa Pos; Antara (22 May 2026); Suara.com; Ford Authority

  • Prabowo to open CATL-IBC battery plant in Karawang, Bahlil says

    Prabowo to open CATL-IBC battery plant in Karawang, Bahlil says

    Top image: Photo: Giorno2, CC BY-SA 4.0, via Wikimedia Commons. The photo shows CATL’s plant in Arnstadt, Germany, not the Karawang site.

    President Prabowo Subianto will soon formally open the electric vehicle battery factory built by CATL and Indonesia Battery Corporation (IBC) in Karawang, West Java, according to Bahlil Lahadalia, the coordinating minister for downstreaming and energy transition. No date has been given.

    Bahlil made the announcement at the State Palace in Jakarta on Monday 19 October, CNBC Indonesia reported. He framed it as evidence that nickel downstreaming is “going well” (translated from Indonesian), pointing to factories Prabowo recently opened at Weda Bay in North Maluku, the hub from which Indonesia shipped its first EV batteries this month.

    Already producing since July

    The ceremony will be a formal opening rather than a start-up. As we reported in August, the plant began phased operations earlier this year. IBC chief executive Aditya Farhan Arif told a media event in Jakarta on 14 September that the factory had been running since July, according to CNBC Indonesia. It makes battery cells and packs for EVs, as well as battery energy storage systems (BESS).

    Key details, as reported by CNBC Indonesia and summarised by Kayonews:

    • Operator: PT Contemporary Amperex Technology Indonesia Battery (CATIB), a joint venture between IBC and CBL, a CATL subsidiary.
    • Location: the Artha Industrial Hill and Karawang New Industry City estates.
    • Capacity: 6.9 GWh in the first phase, with a plan to reach at least 15 GWh, which IBC says would be enough for around 250,000 EVs.
    • Investment: about US$1.2 billion (around Rp21.19 trillion) to build out to 15 GWh.
    • Timeline: ground was broken on 29 June 2025, so production began roughly 13 months later.
    • Workforce: IBC sent 600 employees to China for training.
    • Plans: an 18 MWp solar power plant is planned for 2027, and IBC and CATL are also developing a US$600 million battery materials project in Halmahera.

    CNBC Indonesia describes the factory as Indonesia’s second EV battery plant, after Hyundai LG Indonesia (HLI) Green Power, which was opened in July 2024.

    Why it matters

    Battery supply is becoming central to Indonesia’s EV rules. Carmakers face a 60% local-content (TKDN) requirement from 2027, and the battery is the single most valuable component in an electric car. A domestic cell and pack plant gives brands assembling locally a possible route to higher local content, although neither CNBC Indonesia nor IBC has said which carmakers will buy the Karawang output or which battery chemistry it uses.

    The opening also comes as the government finalises a new incentive package, with debate over whether cars using nickel-based batteries should get bigger support than those using lithium iron phosphate (LFP).

    What it means for buyers

    For now, very little changes on the showroom floor. Locally made cells could in time help brands meet local-content rules and keep tax incentives, which affects prices. But until carmakers confirm they are sourcing from Karawang, buyers should treat the plant as a long-term factor rather than a reason to expect cheaper EVs soon.

    Follow-up (4 November 2026): Speaking on 2 November, Bahlil again said the Antam-CATL plant would be inaugurated this month, and claimed Indonesia now has a mine-to-cell battery chain. Read more.

    Sources: CNBC Indonesia – Prabowo Segera Resmikan Pabrik Baterai EV Terbesar ke-2 RI (20 Oct 2026); Kayonews – Prabowo Segera Resmikan Pabrik Baterai EV, Investasi Tembus Rp21 Triliun (22 Oct 2026).

  • Periklindo pushes back on bigger EV incentives for nickel-battery cars

    Periklindo pushes back on bigger EV incentives for nickel-battery cars

    Top image: Photo: Yo-Co-Man, CC BY-SA 4.0, via Wikimedia Commons

    The Indonesian Electric Vehicle Industry Association (Periklindo) has asked the government to rethink a plan to give bigger purchase incentives to electric cars that use nickel-based batteries, arguing that cheaper chemistries such as lithium iron phosphate (LFP) have caught up and that tying support to one material could make EVs less affordable.

    The comments came at a Periklindo press conference in Jakarta on Friday, 23 October, Republika reported, as the government works to finalise its long-delayed incentive package for battery electric vehicles (BEVs). It follows the association’s call earlier in the week for incentives to be extended to electric buses and trucks.

    What the government has proposed

    Finance Minister Purbaya Yudhi Sadewa set out the basic idea in May: value-added tax on electric cars would be partly or fully borne by the state (PPN DTP), at 100 per cent for cars with nickel manganese cobalt (NMC) batteries and 40 per cent for cars with non-nickel batteries such as LFP, according to InvestorTrust and DDTCNews. The package was meant to start in mid-2026 but was postponed; in June, Coordinating Minister for Economic Affairs Airlangga Hartarto said the scheme was still being reviewed.

    Energy and Mineral Resources Minister Bahlil Lahadalia has defended the nickel tilt. In August he said LFP was not a government priority because Indonesia lacks its key raw materials, and argued that nickel batteries perform better on long journeys, Metro TV reported. Antara said on 23 October that a larger incentive for nickel-based EVs, aimed at using domestic minerals and building the national battery industry, remains one of the options under consideration.

    Periklindo’s objections

    Periklindo chairman Moeldoko said Indonesia’s large nickel reserves should not dictate which battery technology carmakers use.

    “Does the material have to be nickel? In my view it cannot be forced like that.” – Moeldoko, quoted by Antara and Republika (translated from Indonesian)

    The association’s deputy chairman for development and research, Prabowo Kartoleksono, said LFP batteries now offer energy density comparable to NMC at a price about 30 per cent lower, Antara reported. He warned that reserving the larger incentive for nickel batteries could limit manufacturers’ freedom to pick the technology that suits the market, which matters most for price-sensitive products such as electric motorbikes.

    He also pointed to a link with local-content rules: according to Otodream and Antara, he said that earning TKDN (local content) credit currently requires using nickel batteries, which he described as very expensive. That ties the debate to the ministry’s plan for a 60 per cent local-content requirement from 2027 and its view that local batteries could lift imported EVs’ local content.

    Prabowo Kartoleksono did see a nickel opportunity elsewhere. He said solid-state batteries can use nickel, and suggested Indonesia should consider entering that technology while it is still new. He also mentioned sodium-ion batteries as another alternative under development.

    Uncertainty is the bigger worry

    Beyond the nickel question, Periklindo asked for incentive policy that is clear, consistent and transparent. Republika reported the association’s concern that repeated delays encourage buyers to hold off while they wait for announcements, which makes production planning harder. The separate electric-motorbike subsidy is also still being finalised, after earlier plans pointed to a start no earlier than September 2026.

    What it means for buyers

    No final scheme has been published, so current prices still reflect the existing tax rules set out in our 2026 EV tax guide. If the 100/40 split proposed in May is adopted, the battery chemistry of a car would affect how much VAT relief it gets, so buyers comparing models should check whether a car uses an NMC or LFP pack. Anyone planning to buy soon faces the same dilemma Periklindo describes: waiting could bring a bigger discount, but there is still no confirmed date or final design.

    Sources: Antara (Indonesian), 23 Oct 2026; Republika (Indonesian), 24 Oct 2026; Otodream (Indonesian), 25 Oct 2026; DDTCNews (Indonesian), 23 Jun 2026; InvestorTrust (Indonesian), 2 Jun 2026; Metro TV (Indonesian), 4 Aug 2026.

  • Chinese nickel producers in Indonesia weigh output cuts, including battery MHP

    Chinese nickel producers in Indonesia weigh output cuts, including battery MHP

    Top image: Photo: Ministry of Public Works of Indonesia, Public domain, via Wikimedia Commons

    Chinese nickel producers operating in Indonesia are discussing coordinated output cuts, including at plants that make a key feedstock for electric-vehicle batteries, after a slide in nickel prices squeezed their margins.

    Executives from companies including Tsingshan Group, Huayou Cobalt, CNGR Advanced Material, Lygend Resources and GEM met on Tuesday, 20 October, to discuss curbs, Reuters reported, following an earlier report by Bloomberg. No decision had been taken on the size or length of any cut. Reuters cited three sources as saying the firms were weighing halving output of mixed hydroxide precipitate (MHP), an intermediate product used to make battery chemicals, and four sources as saying a 20 per cent cut to nickel pig iron (NPI), used mainly in stainless steel, was under consideration.

    Australian-listed Nickel Industries, which holds a 10 per cent stake alongside Huayou in the Huayue nickel-cobalt project at the Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi, said cuts were coming. Managing director Justin Werner told an earnings call there would be “coordinated cuts across all of the operations within the IMIP”, without giving a percentage, and said producers without integrated operations would be hit hardest. The company has already reduced its own Indonesian NPI output to 75 per cent of capacity this month, according to Reuters.

    Prices, costs and quotas

    Nickel had fallen nearly 25 per cent from its 2026 peak of about US$20,000 a tonne to US$15,070 last week, its lowest level since December 2025, Reuters said. Talk of cuts has since lifted prices: The Edge Malaysia reported that nickel rose for a fourth straight day on 21 October to above US$16,000 a tonne on the London Metal Exchange, and Reuters said LME nickel gained 3.7 per cent that day. An earlier attempt to agree cuts, in August, failed, The Edge noted.

    Producers are also dealing with sulphur shortages, which push up the cost of making MHP, and with tighter ore-mining quotas set by the Indonesian government. Jakarta has separately been weighing a halt to new semi-finished nickel smelters because of oversupply.

    Indonesia produced about two-thirds of the world’s mined nickel in 2025, according to US Geological Survey figures cited by Reuters, so decisions taken at Morowali ripple through global supply chains for both steel and batteries.

    What it means for Indonesia’s EV ambitions

    MHP links Indonesia’s nickel mines to its battery ambitions: it feeds the precursor and cathode materials used in nickel-based lithium-ion cells. A deep MHP cut would tighten supply for battery-chemical makers, though it could also support prices that have been under pressure. Indonesia only recently shipped its first EV batteries from the Weda Bay nickel hub, and the industry’s reliance on captive coal power has also drawn scrutiny.

    For car and motorbike buyers in Indonesia, there is no direct effect on showroom prices in the short term, and many lower-priced EVs use lithium iron phosphate (LFP) batteries that contain no nickel. The cuts matter more for the longer-term case that Indonesia can turn its nickel reserves into a domestic battery and EV industry, which underpins the government’s local-content rules and incentives.

    Sources: Reuters via MINING.COM; The Edge Malaysia; Bloomberg.

  • Indonesia weighs halt to new semi-finished nickel smelters amid glut

    Indonesia weighs halt to new semi-finished nickel smelters amid glut

    Top image: Photo: Famhar1968, CC BY-SA 4.0, via Wikimedia Commons

    Indonesia is considering a halt to the construction of new nickel smelters that make semi-finished products, as a global surplus drags down prices of the metal at the heart of many electric vehicle batteries. The idea was raised by Bahlil Lahadalia, Coordinating Minister for Downstreaming and Energy Transition and Minister of Energy and Mineral Resources, and it has not yet become policy.

    What the minister said

    Speaking to reporters on the sidelines of the Investor Daily Summit in Jakarta on 7 October, Bahlil said that roughly 50–60% of the smelters now operating turn out semi-finished nickel, and that the government was weighing a moratorium on new plants of this kind while it pushes industries that make finished downstream products instead, according to Koran Jakarta, citing Antara. He said the option would be reported to President Prabowo Subianto.

    “This is oversupply, which is why prices are falling.”
    — Bahlil Lahadalia, reported by Koran Jakarta and CNBC Indonesia (translated from Indonesian)

    Bahlil tied the move to a surplus of about 2.5 million tonnes, CNBC Indonesia reported. detikFinance noted that the unit behind that figure was not spelled out in his remarks, so it should be treated with some caution.

    Which products could be affected

    Reports differ on the scope. The Antara-based report in Koran Jakarta lists ferronickel, nickel pig iron (NPI), nickel matte and mixed hydroxide precipitate (MHP) as Indonesia’s main semi-finished products. The South China Morning Post mentions NPI and nickel matte specifically. That distinction matters for the EV supply chain: NPI goes mostly into stainless steel, while matte and MHP are intermediate feedstocks for battery materials. Until the government publishes a rule, it is not clear whether battery-grade intermediates would be caught.

    The Oregon Group, a resources news site, reported that nickel fell to a 2026 low of US$15,510 a tonne on 2 October. It said Indonesia’s smelters would need about 415 million tonnes of ore a year at full capacity, against expected 2026 ore output of roughly 290 million tonnes. Citing Indonesian Nickel Miners Association (APNI) data via the OECD, it counted 55 RKEF smelters, 10 HPAL plants and 8 nickel-matte plants in the country.

    Industry and investor reaction

    The Indonesian Nickel Industry Forum (FINI) responded this week. Its chairman, Arif Perdana Kusumah, told CNBC Indonesia that the supply-demand balance has shifted sharply since late 2025 and that tighter government supply policy has, in theory, already rebalanced the market. FINI’s figures put Indonesia at about 60% of world nickel supply, with 2.5 million tonnes produced in 2025: 2.05 million tonnes of NPI, ferronickel and matte, and 450,000 tonnes of MHP and nickel sulphate. The forum expects Indonesian processed nickel output to fall by 3.5–4% in 2026, while MHP capacity, driven by HPAL projects, is set to more than double to over 900,000 tonnes by the end of 2027.

    Any freeze would land mostly on Chinese investors. detikFinance, summarising the SCMP report, cited an estimate from the US-based Center for Advanced Defense Studies that Chinese money accounts for about 75% of Indonesia’s nickel refining industry. Nukila Evanty of the Asia Centre said Chinese investors were likely to be significantly affected.

    What it means for EV buyers

    Nothing changes at the showroom for now. The proposal targets new semi-finished smelters, not existing plants, and it is still at the discussion stage. Over the longer term, the government’s stated aim is to move nickel further along the chain towards products such as battery cells, which ties in with the first EV battery export from Weda Bay earlier this month and with the ministry’s plan to let locally made batteries count towards the 60% local-content rule. If battery-grade intermediates are spared and cell-making grows, local supply for Indonesian-assembled EVs could improve. If they are not, battery-material projects could slow. The environmental footprint of the smelter parks, covered in our report on their largely coal-fired power base, is a separate question the proposal does not address.

    Update, 23 October: Chinese producers at the Morowali industrial park are now discussing coordinated output cuts, possibly including battery-grade MHP. Read our follow-up.

    Follow-up (4 November 2026): At Minerba Convex on 2 November, Bahlil said the government is now reviewing permits for new smelters that make only semi-finished products. Read more.

    Sources: Koran Jakarta (Antara), 7 Oct 2026; CNBC Indonesia, 14 Oct 2026; detikFinance, 10 Oct 2026; South China Morning Post, 10 Oct 2026; The Oregon Group, 9 Oct 2026

  • Nickel parks’ 15.9 GW power base, mostly coal, raises EV battery questions

    Nickel parks’ 15.9 GW power base, mostly coal, raises EV battery questions

    Top image: Photo: Ministry of Public Works of Indonesia (Kementerian PUPR), Public domain, via Wikimedia Commons

    Indonesia’s two biggest nickel processing hubs now have around 15.9 gigawatts (GW) of power capacity, most of it from coal plants the parks build and run for themselves. Energy experts quoted by Kontan on Sunday 11 October warned that this reliance on so-called captive coal power could weaken the appeal of the country’s nickel and EV battery materials in export markets that increasingly check carbon footprints.

    The debate follows last week’s ceremony at the Indonesia Weda Bay Industrial Park (IWIP) in North Maluku, where President Prabowo Subianto marked Indonesia’s first EV battery exports and the start of 11 industrial projects.

    Where the 15.9 GW figure comes from

    At the IWIP groundbreaking on Thursday 8 October, Investment and Downstreaming Minister and Danantara CEO Rosan Roeslani said installed and under-construction power capacity at IWIP exceeds 7.1 GW, while the Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi has about 8.8 GW. He put the combined total at roughly 15.9 GW and compared it with Singapore’s total electricity use of 13.1 GW, according to Antara and Kontan.

    Antara’s report of the event put the 11 projects at US$10.2 billion. They include nickel-based battery materials, battery separators and electrolytes, aluminium smelting, electric mining trucks and solar glass. Antara did not describe the parks’ power mix. Kontan’s reporting says the capacity is dominated by captive coal-fired plants (PLTU captive), which operate outside the state utility PLN’s grid.

    Why smelters build their own coal plants

    Muhammad Kholid Syeirazi, a member of the National Energy Council (DEN), told Kontan that investors choose captive coal because it is seen as cheap, reliable and can be built anywhere, including areas PLN’s grid does not reach. Smelters need gigawatt-scale power that runs around the clock, and he said PLN’s systems in some industrial regions cannot yet supply that.

    “If industrial expansion continues to be powered by captive coal plants, the Net Zero Emission 2060 target could be missed.”
    — Muhammad Kholid Syeirazi, DEN, to Kontan (translated from Indonesian)

    He called for all new captive capacity to be written into the national energy and electricity plans (RUEN, RUKN and PLN’s RUPTL) so it can be tracked against transition goals. He also noted that global buyers increasingly look at the carbon footprint of nickel, steel, aluminium and EV battery materials, and that high-emission products could face trade barriers and higher compliance costs.

    Saleh Abdurrahman of the Indonesian Renewable Energy Society (METI) told Kontan that large industrial users usually build their own plants when PLN cannot guarantee the capacity and reliability they need. He said the government’s planned 100 GW solar programme would make net-zero commitments more credible if it is delivered, but that it still needs clear buyers for the power.

    Stranded-asset and revenue concerns

    Yusuf Rendy Manilet, a researcher at the Center of Reform on Economics (CORE), told Kontan that state revenue from the parks does not rise in step with export values, because of fiscal incentives, imported capital goods and profits sent abroad. He said the net benefit shrinks further once health, pollution and carbon costs are counted. He also pointed out that current rules still exempt captive coal plants linked to national strategic projects.

    He warned that high-carbon nickel could lose access to premium markets or face price penalties. He also said the coal plants being built now “have operating lives of decades, so they risk becoming stranded assets” (translated from Indonesian). His suggestions included requiring new smelters to use renewable or hybrid power, and opening “power wheeling” so parks can buy green electricity through PLN’s network.

    What it means for buyers

    For Indonesian EV buyers, nothing changes at the showroom today. Only a handful of EVs on sale locally use nickel-based batteries, as Suara noted earlier this year, so the parks’ power mix has little direct bearing on what most local buyers drive. The issue matters more for the bigger picture: whether Indonesia’s nickel-to-battery strategy, outlined in our battery industry guide, can produce materials that carmakers and overseas regulators regard as low-carbon. That will shape how much battery investment and value-added work stays in Indonesia, alongside the 60% local-content rule due from 2027.

    Update, 14 October 2026: the government is now weighing a moratorium on new smelters that make semi-finished nickel. Read more: Indonesia weighs halt to new semi-finished nickel smelters amid glut.

    Sources: Kontan – DEN on captive power (11 Oct 2026); Kontan – METI on industrial power demand (11 Oct 2026); Kontan – CORE on nickel exports (11 Oct 2026); Antara – 11 industrial projects worth US$10.2 billion (8 Oct 2026)

  • Indonesia ships first EV batteries from Weda Bay nickel hub

    Indonesia ships first EV batteries from Weda Bay nickel hub

    Top image: Photo: Muhammad ECTOR Prasetyo from Pamiers, Toulouse, France, CC BY 2.0, via Wikimedia Commons

    President Prabowo Subianto on Thursday, 8 October, launched what the government called Indonesia’s first export of electric vehicle batteries. The shipment came from the Indonesia Weda Bay Industrial Park (IWIP) in Central Halmahera, North Maluku, a nickel processing hub. He launched it at a virtual ceremony, together with a package of industrial projects that officials valued at about Rp180 trillion (US$10.2 billion), Antara reported.

    “This is concrete proof that our downstreaming policy is on the right track,” Prabowo said, as quoted by Antara.

    Four projects go commercial, seven break ground

    Four projects at the park entered commercial operation. According to Bisnis.com, they are:

    • PT REPT Battero Indonesia, the battery exporter, which makes nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) batteries;
    • PT Blue Sparking Energy, which exports mixed hydroxide precipitate (MHP), an intermediate nickel product used in battery supply chains;
    • PT Pioneer Aluminium Industries, which makes aluminium products;
    • PT XCMG Indonesia Manufacturing, which makes heavy equipment.

    Construction began on seven more projects, including nickel-cobalt, battery materials, aluminium and solar glass plants, and a vehicle plant listed as Guangqing Motor Indonesia. OtoDream reported that the four commercial projects represent about US$3.4 billion of investment and the seven new ones about US$6.8 billion. The government expects them to create more than 10,000 jobs. Investment minister Rosan Roeslani, who also heads the Danantara sovereign fund, said the projects cover battery materials, battery separators and electrolytes, aluminium, electric mining and industrial trucks, and photovoltaic glass.

    What was actually shipped is not yet clear

    None of the reports we reviewed gave the destination, volume or value of the first battery shipment. Accounts also differ on what was exported. Bisnis.com describes REPT Battero’s product as NMC and LFP batteries. detikFinance calls them battery raw materials, which could mean components rather than finished cells. The two outlets also describe Pioneer Aluminium’s product differently, as electrolytic aluminium (Bisnis.com) or aluminium electrolytic capacitors (detikFinance).

    REPT Battero is a Chinese battery maker. In January 2025 it announced plans for an 8 GWh cell factory in Indonesia aimed mainly at stationary energy storage. In May this year it said it expected Indonesian local-content (TKDN) and national standard (SNI) certification and had signed deals with makers of passenger and commercial EVs, ESS News reported. So it is possible that some of the first exports were energy-storage batteries rather than packs for cars or motorbikes.

    Why it matters

    The government’s downstreaming policy aims to process nickel at home into higher-value products rather than shipping raw ore, and battery exports are the step it has long promised. The Weda Bay launch follows phased operations at the CATL–IBC battery plant in Karawang. Our guide to Indonesia’s battery industry explains how the pieces fit together.

    What it means for buyers: do not expect any immediate effect on showroom prices. In the longer term, more cells and battery materials made in Indonesia would make it easier for carmakers to meet the 60% local-content requirement from 2027, which decides whether EVs qualify for tax incentives. Whether batteries made at Weda Bay end up in cars sold in Indonesia, or mainly go abroad, is a question to watch.

    Follow-up: Experts have since raised questions about the coal-heavy power supply behind the Weda Bay and Morowali parks. Read Nickel parks’ 15.9 GW power base, mostly coal, raises EV battery questions.

    Related: Imported EVs could hit 60% local content with local batteries, ministry says

    Update, 14 October 2026: the government is now weighing a moratorium on new smelters that make semi-finished nickel. Read more: Indonesia weighs halt to new semi-finished nickel smelters amid glut.

    Sources: Antara; Bisnis.com; detikFinance; OtoDream; Energy-Storage.news; ESS News.

  • Indonesia’s EV and Battery Industry: Nickel, Policy and the Road to 2030

    Indonesia’s EV and Battery Industry: Nickel, Policy and the Road to 2030

    Top image: Photo: Government of North Morowali, Indonesia, Public domain, via Wikimedia Commons

    Indonesia wants to do more than buy electric vehicles. It wants to make them, from the nickel in the ground to the finished battery pack. That goal has shaped policy for more than five years, including export bans, tax incentives and billion-dollar deals with Chinese and Korean partners. This guide explains how the strategy works, who the main players are, what has been built so far, what the government is aiming for by 2030 and where it could go wrong.

    Why nickel matters

    Nickel is a key ingredient in the NMC (nickel-manganese-cobalt) and similar battery chemistries used in many long-range EVs. Indonesia dominates the supply. The US Geological Survey estimates that Indonesia mined about 2.6 million tonnes of nickel in 2025, around two-thirds of the world’s 3.9 million tonnes. It also holds some 62 million tonnes of reserves out of a global total of more than 140 million tonnes.

    Downstreaming: the export ban and what followed

    In 2020 Indonesia reinstated a ban on exporting raw nickel ore. The aim was to force processing to happen at home. A March 2026 policy paper from the London School of Economics’ Centre for Economic Transition Expertise (CETEx) found that the ban brought a wave of mostly foreign investment in smelters. That investment went largely into huge industrial parks such as the Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi and Weda Bay (IWIP) in North Maluku. According to the paper, Indonesia has produced more than half of the world’s nickel since 2023, and its exports have moved from ore towards higher-value products, including the nickel sulphate used in batteries.

    In October 2026, IWIP was the site of what the government called Indonesia’s first export of EV batteries.

    Output has grown so fast that the government is now holding it back. For 2026 the energy ministry cut the approved ore quota (RKAB) to about 260 million tonnes, from 379 million tonnes in 2025, to ease oversupply and support prices, CNBC Indonesia reported. Indonesia also imported about 15.8 million tonnes of ore in 2025, mostly from the Philippines, to keep its smelters supplied.

    Indonesia Battery Corporation and the big projects

    Indonesia Battery Corporation (IBC), or PT Industri Baterai Indonesia, is a state-owned holding company set up to be the government’s partner in battery projects. There are three projects to know about.

    Hyundai–LG: the first cell plant

    HLI Green Power in Karawang, West Java, was opened by President Joko Widodo in July 2024 as Indonesia’s first large EV battery-cell factory (CNBC Indonesia). It was the first 10 GWh of a planned 30 GWh “Indonesia Grand Package” agreed with LG Energy Solution. LG pulled out of the remaining stages in early 2025, and China’s Huayou took over. The Antam–IBC–Huayou consortium agreement was signed in January 2026, Antara reported.

    CATL: an integrated project worth about US$6 billion

    In June 2025 a CATL subsidiary broke ground with Antam and IBC on a project costing nearly US$6 billion. It covers nickel mining and processing, cathode materials and recycling in East Halmahera, and cell manufacturing in Karawang. CATL says the Halmahera facilities will eventually produce 142,000 tonnes of nickel and 30,000 tonnes of cathode material a year. The Karawang cell plant, run by the joint venture PT CATIB, has a first-phase capacity of 6.9 GWh. It began phased operations in August 2026, according to the energy ministry, and is expected to make both LFP and nickel-based batteries (Suara).

    Vehicle makers moving in

    Carmakers are building factories too. BYD opened its plant in Subang, West Java, on 3 September 2026, which is expected to employ around 5,000 local workers (Antara). Several other Chinese brands now assemble in Indonesia. That is partly because tax breaks for fully imported EVs ended in December 2025, and brands that imported cars under the scheme promised to build the same number locally between 2026 and 2027.

    Policy levers

    • Local content (TKDN). EVs must meet rising local-content minimums to qualify for incentives: 40% in 2026, 60% in 2027–2029 and 80% in 2030 (Antara).
    • Incentives that favour nickel. The VAT incentive announced in 2026 gives a larger discount to cars with nickel-based batteries. The then finance minister said this was meant to get Indonesia’s own nickel used (CNBC Indonesia).
    • A national motorbike programme. The Molinas initiative, launched in August 2026, aims to connect nickel refining, cell making and two-wheeler assembly in one domestic supply chain (Antara).

    The road to 2030: targets

    • Production of 600,000 electric cars and 2.45 million electric motorbikes a year by 2030, set by the industry ministry (Kompas).
    • 62,918 four-wheel public chargers by 2030, compared with about 4,892 in May 2026 (Periskop).
    • The ministry’s TKDN roadmap, reaching 80% in 2030.

    Domestic demand is growing. BEV wholesales passed 101,000 in the first eight months of 2026 (Kompas).

    The challenges

    • The shift to LFP. Many of the best-selling EVs in Indonesia and worldwide use lithium iron phosphate (LFP) batteries, which contain no nickel. IBC’s own chief executive has said LFP now dominates the local market (Suara). That makes it harder to argue that nickel will automatically turn into battery value.
    • Prices and oversupply. Data cited by the USGS shows the global nickel market in surplus every year since 2022. That squeezes margins and is the reason for the production quota cuts.
    • Environmental and social costs. CETEx notes that nickel miners cleared more than 75,000 hectares of forest in 2007–2022, and that much of the processing runs on captive coal power plants. New mining in sensitive areas such as Raja Ampat has caused public concern.
    • Concentration and policy risk. CETEx also points to the dominance of Chinese-Indonesian smelting groups. Repeated delays to consumer incentives in 2026 have made demand less predictable.

    This guide describes policy and investment as reported at the time of writing. Targets, quotas and incentive rules are revised often, so check the latest announcements from the ministries concerned.

    FAQ

    What is nickel downstreaming?

    It is the policy of processing nickel ore in Indonesia instead of exporting it raw. It is backed by an ore export ban that was reinstated in 2020.

    What is Indonesia Battery Corporation?

    It is a state-owned battery holding company that partners with foreign firms such as CATL, Huayou and LG on cell and materials projects.

    Does Indonesia make EV batteries yet?

    Yes. The Hyundai–LG plant in Karawang has operated since 2024, and the CATL–IBC plant began phased operations in August 2026.

    What are the 2030 targets?

    Annual production of 600,000 electric cars and 2.45 million electric motorbikes, with 80% local content and nearly 63,000 public car chargers.

    Related on IndoEVs

    Related news: Nickel parks’ 15.9 GW power base, mostly coal, raises EV battery questions (October 2026).

    Sources: USGS – Mineral Commodity Summaries 2026: Nickel; CETEx (LSE) – How Indonesia’s ban on raw nickel exports provides lessons; CNBC Indonesia – Produksi Bijih Nikel RI Dipangkas Jadi 260-an Juta Ton; Antara – Indonesia targets 2026 groundbreaking for Huayou EV battery project; CATL – CATL and Partners Break Ground on US$6 Billion Battery Integration Project in Indonesia; Suara – Pabrik Baterai PT CATIB di Karawang Sudah Beroperasi; CNBC Indonesia – Siap-Siap Pabrik Baterai EV Raksasa Ke-2 RI Segera Beroperasi; Antara – Pemerintah kaji insentif kendaraan listrik berbasis TKDN; CNBC Indonesia – Purbaya Tunda Insentif Mobil Listrik; Kompas – Kemenperin Targetkan Produksi Mobil Listrik 600.000 Unit pada 2030; Periskop – Konsumsi SPKLU Tembus 62,4 Juta kWh; CNN Indonesia – Daftar Insentif Mobil Listrik yang Disetop; Antara (English) – Molinas marks new chapter; Kompas – Daftar Mobil Listrik Terlaris hingga Agustus 2026

  • CATL-IBC battery plant in Karawang starts phased operations

    CATL-IBC battery plant in Karawang starts phased operations

    Top image: Photo: Ministry of Public Works of Indonesia – Kementerian PUPR Republik Indonesia, Public domain, via Wikimedia Commons

    Indonesia’s flagship electric vehicle battery factory, a joint venture between China’s CATL and state-owned Indonesia Battery Corporation (IBC) in Karawang, West Java, has begun operating on a phased basis, government officials said in August. The plant is a key piece of Jakarta’s plan to turn the country’s vast nickel reserves into a domestic battery industry.

    Commissioning under way

    Ahmad Erani Yustika, secretary-general of the Ministry of Energy and Mineral Resources, confirmed the start of operations to Bloomberg Technoz on 21 August:

    “It may still be in stages, but it has started operating.” – Ahmad Erani Yustika, Ministry of Energy and Mineral Resources, to Bloomberg Technoz (translated from Indonesian)

    Bloomberg Technoz reported that commissioning was under way and that the factory had been expected to be formally inaugurated by President Prabowo Subianto before Independence Day on 17 August, although the ceremony was still awaiting a date in the president’s schedule. English-language outlet Investortrust described the start as trial runs and quoted Mr Erani as saying construction was effectively complete.

    Cells, modules and packs

    The plant is run by PT Contemporary Amperex Technology Indonesia Battery (CATIB), a company formed by CATL subsidiary CBL, mining firm Antam and IBC. Speaking to Bisnis.com in June, IBC chief executive Aditya Farhan Arif said CATIB would produce battery cells, modules and complete battery packs, serving both electric vehicles and battery energy storage systems (BESS).

    Initial capacity is 6.9 GWh a year, with plans to expand to 15 GWh – more than double – which Bisnis said was targeted for the following year. Mr Aditya signalled that the pace of expansion would depend on the market:

    “With batteries, a battery factory really has to wait for demand.” – Aditya Farhan Arif, IBC, to Bisnis.com (translated from Indonesian)

    IBC has also said it hopes to export batteries to Europe, kumparan reported in May.

    Part of a larger nickel-to-EV chain

    According to Investortrust, the Karawang plant represents an investment of about US$1.2 billion and forms part of the wider Indonesia Battery Integration Project, valued at US$5.9–6 billion, which aims to link nickel mining and processing with cell production and recycling. The outlet also quoted President Prabowo setting a goal of large-scale commercial production of Indonesian electric passenger cars by 2028.

    Indonesia holds the world’s largest nickel reserves, and nickel-based chemistries such as NMC are central to the government’s industrial strategy. However, many of the most popular EVs now sold in Indonesia use lithium iron phosphate (LFP) batteries, which contain no nickel – one reason why officials are keen to secure a domestic cell supply chain that carmakers will actually use. Whether the Karawang plant’s output ends up in locally assembled cars, energy storage or exports will be closely watched.

    What it means for buyers

    For now, the start of production at Karawang will not change the price of any EV in a showroom. Over time, however, a domestic source of cells and packs should help carmakers meet Indonesia’s rising local-content requirements – 60% from January 2027 – which determine eligibility for tax incentives. Locally made batteries could also make replacement packs and battery servicing easier and cheaper to obtain, a common concern for Indonesian buyers weighing up an EV’s long-term running costs.

    Related on IndoEVs

    Update (27 October 2026): The plant has been producing since July, and the government says President Prabowo will formally open it soon. Read our follow-up.

    Sources: Bloomberg Technoz – Pabrik Baterai CATL & IBC di Karawang Resmi Beroperasi; Bisnis.com – Pabrik Baterai CATL-IBC di Karawang Punya Kapasitas Awal 6,9 GWh per Tahun; Investortrust – CATL-IBC battery plant begins trial runs in West Java; kumparan – Pabrik Baterai Listrik di Karawang Beroperasi Juli 2026, IBC Mau Ekspor ke Eropa

  • Prabowo launches Molinas national e-motorcycle programme to use nickel

    Prabowo launches Molinas national e-motorcycle programme to use nickel

    Top image: Photo: AntaraTV, CC BY 3.0, via Wikimedia Commons

    President Prabowo Subianto has launched Molinas, short for Motor Listrik Nasional (National Electric Motorcycle), a government-led programme to build a domestic electric motorcycle industry backed by locally processed nickel batteries. The launch took place on 13 August 2026 at the production facility of electric motorcycle maker ALVA in Cikarang, Bekasi, West Java.

    More than a single bike

    Despite the name, Molinas is not one model but an ecosystem. According to Antara, it covers manufacturing and components, batteries, charging and battery-swapping infrastructure, financing, distribution, after-sales service and market uptake. The Jakarta Post reported that state-owned PT Len Industri is the lead integrator, working with the sovereign wealth fund Danantara and at least 10 national motorcycle companies that meet local-content requirements. ALVA is produced by PT Ilectra Motor Group, part of the Indika Energy group.

    Mr Prabowo described the programme as a collaboration between private companies, state-owned enterprises and universities:

    “Today, in my opinion, is one good example of what I call Indonesia Incorporated.” – President Prabowo Subianto, reported by Antara

    The nickel angle

    A central aim is to create demand for batteries made from Indonesian nickel. Indonesia holds around 46% of the world’s nickel reserves, and Rosan Roeslani – investment and downstreaming minister and chief executive of Danantara – linked the programme’s affordability directly to that resource, Antara reported:

    “Molinas can be affordable and high quality, especially since we can carry out downstreaming from nickel into batteries.” – Rosan Roeslani, reported by Antara

    Mr Rosan also framed the programme as a question of economic self-reliance, telling the launch that Indonesia needed to stand on its own feet in every area of economic activity, according to the Cabinet Secretariat.

    Big targets from a small base

    The scale of ambition is considerable. A follow-up report by Antara noted that Indonesia sells 6–7 million motorcycles a year, but only 60,000–70,000 of them – about 1% – are electric. It said 69 companies already make battery-powered vehicles, with a combined capacity of 2.511 million units a year, and that at least 10 local firms meet local-content rules. ALVA currently produces around 20,000 units a year and aims to expand to 200,000.

    Antara reported a national goal of 2 million Molinas e-motorcycles, without a specified timeframe, and a longer-term target of 11 million electric motorcycles on the road by 2037. Supporters argue that the shift could cut fuel subsidy spending by Rp 82.2 trillion between 2027 and 2037 and create around 215,000 direct and indirect jobs.

    What it means for buyers

    Molinas does not yet change what riders can buy or how much they pay. Its practical effect will depend on the details still to come: which models carry the Molinas label, whether battery-swapping networks become widespread enough to ease range worries, and how financing schemes are structured. It also sits alongside the separate Rp 3 million purchase incentive for locally made e-motorcycles, which has yet to take effect. Buyers interested in a Molinas-affiliated bike should look for clear information on battery warranties, swapping availability in their city and after-sales coverage before committing.

    Related: New industry minister inherits stalled e-motorbike incentive as sales sink; E-motorcycle sales slump as Rp 3m purchase incentive stays in limbo; Indonesia ships first EV batteries from Weda Bay nickel hub. Browse electric motorbike brands in our directory.

    Update (30 October 2026): Pertamina Patra Niaga, PLN and Len Industri have signed an MoU to build charging and battery-swap infrastructure for Molinas. Read our report.

    Sources: Antara – Indonesia launches Molinas in push for electric vehicle self-reliance; Antara – Prabowo calls Molinas an example of “Indonesia Incorporated”; Antara – ‘Molinas’ marks new chapter in Indonesia’s EV industrialization; The Jakarta Post – Prabowo kicks off e-motorcycle ecosystem to push nickel use; Cabinet Secretariat – President Prabowo launches National Electric Motorcycle (MoLiNas)