(KPL/VNA) Indonesia is actively seeking to boost investment in a bid to establish itself as a centre for electric vehicle (EV) and battery production in Southeast Asia.
In July, Indonesia inaugurated the region’s first EV battery manufacturing plant, a joint venture between Hyundai Motor and LG Energy Solution from the Republic of Korea (RoK), with a total investment of 1.1 billion USD located in West Java.
Fransiscus Soerjopranoto, CEO of Hyundai Motors Indonesia, stated that the new facility will position Indonesia as a key player in the Southeast Asian EV supply chain. While the country aims to become one of the world’s top three EV battery producers in the near future, investment levels in this sector remain relatively modest.
Indonesia boasts the largest nickel reserves globally, along with iron, copper, and bauxite-critical components for battery production. However, the country still relies on imported processed nickel from the RoK and China due to a lack of related industries.
To stimulate the dom
estic EV market, the Indonesian government has introduced several incentives, including tax exemptions to boost sales amidst competition with imported electric vehicles. However, according to Putra Adhiguna, CEO of the Energy Transition Research Institute, a global oversupply of batteries may hinder Indonesia’s ability to attract further investment.
Source: Lao News Agency