Indonesia: Utilizing Nickel to Build EV Supply Chain

Wuling and Hyundai launch EVs; CATL, LG Energy Solution to produce batteries



  The Indonesian government has identified the environment as a priority in its national development plan and is working to the country, aiming to achieve carbon neutrality by 2060. As a part of the plan, the government has been promoting the electrification of automobiles. According to the production goals for electrified vehicles announced in July 2021, a million units of battery electric vehicles (EVs) are expected to be manufactured in 2035. While sales of EVs totaled only 685 units in 2021, around 8,000 EVs were sold from January to November of 2022, including the Wuling Air EV and Hyundai Ioniq 5 launched earlier in the year. The Indonesian government plans to provide subsidies to customers who purchase electrified vehicles to promote the spread of EVs.

  In addition to a manufacturing hub of electrified vehicles, Indonesia is also aiming  to become a production hub for EV batteries by using its abundant nickel ore natural resources. State-owned enterprises as well as domestic and overseas battery companies are cooperating to build a supply chain for EVs and automotive batteries including the mining and refining of nickel ore, producing precursors and cathode materials, and recyclin.

  The Indonesian government is also focusing on building the charging infrastructure to popularize the use of EVs. The government plans to have 31,859 EV charging stations and 67,000 battery swapping stations for electric motorcycles by 2030. As of the end of 2021, the number of both types of charging facilities totaled around only 500, but the government aims to increase the number to over 4,000 by 2025.

  Regarding activities related to vehicle production in Indonesia, Hyundai Motorstarted operations at its new plant with an annual production capacity of 250,000 units in March 2022. Toyota, Mitsubishi, and Daihatsu are planning to make investments in the country for the production of electrified vehicles. Chery Automobile is planning to build EV and battery production facilities.

  As for the new model launches in 2022, Toyota introduced the bZ4X, its first mass production EV, while Wuling launched the Air EV, a low-priced compact EV. Among MPVs which are popular in Indonesia, Toyota’s new Voxy and Kijang Innova Zenix, Suzuki’s new Ertiga Hybrid, Hyundai Motor’s Stargazer, and Kia’s new Carens were introduced to the market.

Kijang Innova Zenix インドネシアの自動車生産・販売・輸出台数
Toyota’s Kijang Innova Zenix (MPV which made its global premiere in November 2022) (Photo: Toyota) Indonesia's vehicle production, sales and exports


Related reports:
LMC Automotive blog: BEVs take off faster than expected in ASEAN countries (Dec. 2022)
ASEAN Vehicle Sales and Production Update (Q3 2022) (Nov. 2022)
Global Motorcycle Production and Sales: Overview of China, India, and ASEAN (Aug. 2022)
ASEAN: Promoting use and production of EVs to achieve carbon neutrality (Jul. 2022)
LMC Automotive blog: Indonesia’s automotive industry is getting greener (Feb. 2022)
Indonesia: Battery production for 400k EVs in 2025; state and private enterprise collaboration (Oct. 2021)


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