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New tech jolts Indonesia’s battery dreams
Nickel-free lithium iron phosphate batteries are expected to eat into the market share over the next decade, or until 2030, according to several experts, including battery chemist Bambang Prihandoko of the Indonesian Institute of Sciences.
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Posing for a photo at the launch of Blue Bird's electric taxi are (left to right) president director of Blue Bird Group Noni Purnomo, Coordinating Maritime Affairs Minister Luhut Pandjaitan, Transportation Minister Budi Karya Sumadi and PT Blue Bird Tbk director Andrianto Djokosoetono in Jakarta on April 22, 2019. (JP/Seto Wardhana)
T
he emergence of a low-cost, nickel-free electric vehicle (EV) battery might pose challenges to Indonesia, the world’s largest nickel producer, experts and top officials have stated.
Nickel-free lithium iron phosphate (LFP) batteries are expected to eat into the market share over the next decade, or until 2030, according to several experts, including battery chemist Bambang Prihandoko of the Indonesian Institute of Sciences (LIPI).
“It’s likely we are heading toward LFP because it is very safe for electric cars and very durable. It can last as long as the car,” Bambang told The Jakarta Post on Wednesday.
The government recently ordered mining holding company MIND ID, oil and gas giant Pertamina and electricity monopoly PLN to establish a holding company – tentatively “PT Indonesia Battery Holding” – to develop an end-to-end domestic supply chain for EV batteries.
The holding company aims to produce up to 10 gigawatt hours (GWh) worth of nickel-rich batteries each year starting in 2023, according to MIND ID last week.
Indonesia Battery Holding is part of the government’s grand plan to gain more bang for its buck from Indonesia’s vast nickel reserves – the largest in the world – and develop the country’s downstream industry by converting more of the metal into EV batteries and stainless steel.
The company expects global battery demand to quadruple over the next seven years to 777 GWh by 2027, almost all of which will go to EVs. A smaller portion will go into energy storage systems for solar-powered buildings.
