The first regional EV battery plant recently began construction in Karawang, West Java, positioning Indonesia as a key global battery supplier. Operated by HKML Indonesia, the facility will work under the direction of a consortium of companies including LG Energy Solution and Hyundai Motor Group and Industri Baterai with a collective vision to build an integrated supply chain for lithium-ion battery production.

A necessary material in the production of EV batteries is nickel and Indonesia holds one of the world’s largest reserves, roughly 30 per cent (760,000 tonnes mined in 2020). EV battery production is also reliant on copper, and Indonesia’s Grasberg mine in Papua is the world’s second-largest reserve (Grasberg produced 528 billion ounces of copper up to 2019).

According to Shanghai-based automobility expert Bill Russo, the industry is on the front line of a high-tech battle for sustainable economic development – and control of the supply chain of materials needed to power transportation will determine the leaders for years to come.

Russo tells HUB: “Throughout history, mobility innovation has accelerated economic development, and powering the future of mobility requires control of critical technologies and supply chains.”

Russo is the Founder and CEO of Automobility Ltd with over 35 years of experience, 15 years as an automotive executive with Chrysler. He adds, “The transition to sustainable mobility has brought tremendous opportunities for upstream players in the automotive industry, especially battery cell and pack assemblers like Indonesia which control the key technology and intellectual property vector for the propulsion system of the vehicle.”