Value-added analysis of the electric vehicle battery industry in Indonesia

Abstract

The establishment of the Indonesian Battery Corporation is a step forward to make Indonesia a global player in the electric vehicle battery industry. This state-owned consortium is mandated to develop an integrated electric vehicle battery industry ecosystem from upstream to downstream. Indonesia has around six companies developing High-Pressure Acid Leach processing and refining projects. Battery production for Indonesian electric vehicles is estimated to contribute approximately 12.7% to the global market by 2035. A value-added analysis approach model is estimated to increase Gross Domestic Product by $21,434 billion. In addition, the impact on job creation is around 42,603 people. This estimation can be implemented with some supports, such as partners with proven technology and significant capital to build the precursor and cathode industries, battery cell and battery industries, and the electric vehicle industry and policies related to development.