Jakarta, huutoanland Indonesia
–
Deputy Minister
BUMN
Kartika Wirjoatmodjo encourages special policies that make electric vehicle manufacturers (
Ev
) Domestically switch from lithium to nickel -based batteries.This step is considered strategic given the great potential of Indonesia as the largest nickel producer in the world.
“Slowly we also encourage regulations for Indonesia’s EV factories now, whose car manufacturers are also shifting from Lithium Base to Nickel Base,” Kartika said after attending the International Battery Summit 2025 event in Jakarta, Tuesday (5/8), quoted from
Between
.
A number of SOEs, including through cooperation with Catl and Huayou, have been included in the EV battery industry chain and are expanding investment in the midstream or intermediate industry sector.The government also hopes that the support of other ministries can provide additional incentives to accelerate this transition.
According to Kartika, the global EV battery needs are estimated to reach 8,800 GWH to 2040. On this scale, Indonesia is considered to have a great opportunity to take a role by strengthening the supply chain through securing raw materials, distribution efficiency, and strategic collaboration across sectors.
This encouragement is also in line with the steps of President Prabowo who inaugurated an integrated electric vehicle battery industry ecosystem project in Karawang, at the end of June 2025
Developed from upstream to downstream, this project included six subparek in two locations: five in East Halmahera and one in the Artha Industrial Hills (AIH) area, Karawang.The total investment value reached US $ 5.9 billion with a land capacity of more than 3,000 hectares, as well as the potential to absorb up to 8,000 workers.
In addition to focusing on industrial and technology scale, this project is also designed by paying attention to aspects of sustainability.The energy used combines coal power plants (PLTU 2×150 MW), gas generation (PLTG 80 MW), waste power (30 MW) and solar power up to 172 MWP.
This step emphasizes the government’s ambition to make Indonesia a key player in the EV battery supply chain of the world.However, why is the government so encouraging the use of nickel -based batteries, not lithium as is widely used so far?
Nickel battery
NMC type battery (Nickel Manganese Cobalt) is known to have high energy density so that it can store more power than LFP (Lithium Ferro Phosphate) batteries.
NMC energy density can reach around 220 WH/kg, while LFP is around 120 WH/kg.On electric vehicle paper using NMC can go further and the size can be more concise.
In addition to that, nickel is available abundantly in Indonesia so that it can be profitable in terms of cost and local supply chains.
The difference between lfp and nickel
Although both are used in electric vehicles, LFP and NMC or NCA (Nickel Cobalt Aluminum) batteries have different characteristics, the following details:
1. Energy density
Nickel battery is superior about energy density.That is, in the same size and weight, this battery can store more electric power than LFP.
This makes vehicles with nickel batteries able to travel further distances in one charging.
While LFP has lower energy density, so the mileage tends to be shorter.That is why LFP is more suitable for daily electric cars or entry level segments.
2. Age of use
LFP is known to have a longer filling cycle.In the long run, this battery is generally more durable in terms of the amount of use.
3. Thermal stability
One of the main advantages of the LFP battery is its stability to high temperatures.This battery is safer from the risk of overheating and fire, even in extreme situations.
Nickel battery, on the other hand, is more sensitive to heat and requires a more complex cooling system to maintain its safety, especially in high -performance electric cars.
4. Production costs
LFP batteries are generally cheaper produced because the raw materials are easier to obtain and the production process is simpler.It also contributes to the selling price of more competitive electric cars.
Conversely, nickel batteries have a higher production price.Apart from components such as cobalt and nickel are more expensive, the production process is also more complex and technological dense.
5. Vehicle application
Electric cars with LFP batteries are generally found in models such as city cars and light commercial vehicles.For example byd Dolphin and Wuling Air Ev.
While nickel batteries are more widely used by middle and upper class electric car manufacturers, which require further reach and high performance.Some examples include Hyundai Ioniq 5 and Toyota Innova Zenix Hybrid.
(Job/Fea)
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