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RI to produce tiny sliver of world’s EV batteries this year: Report
The country's miniscule battery production this year contrasts with its significant export of nickel, a key component in some types of EV batteries.
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A nickel smelter in Morosi, Southeast Sulawesi, operated by Virtue Dragon Nickel Industry (VDNI) is pictured on Feb. 10, 2023. Indonesia is the world's largest producer of nickel, a critical component of some electric vehicle batteries. (AFP/Adek Berry)
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ndonesia is expected to produce less than 0.4 percent of the world’s total electric vehicle (EV) battery energy this year, a share that may persist until at least 2030, a report by energy finance think tank Energy Shift Institute has found.
The country is expected to produce only 10 gigawatt-hours (GWh) of EV battery energy out of the world total of 2,800 GWh this year. China, the report noted, was expected to dominate this year’s EV battery production.
Meanwhile, Indonesia is expected to account for more than half of worldwide nickel production this year. The metal is a key component of some types of EV batteries.
By 2040, the report predicts the country will provide 70 percent of world’s annual nickel production.
Energy Shift Institute managing director Putra Adhiguna said the rapid growth of nickel mining and refining had not been accompanied by parallel development in the battery sector.
“The Indonesian government’s downstream strategy seems to be leaning towards building the supply chain from the ground up,” he wrote in the report published on Friday.
“The dilemma is that the world is already well on its way in racing to establish factories for batteries and EVs, and the space further up the value chain is becoming crowded.”
