Electric Battery Production Capacity is Considered to Need to Be Increased

Electric battery illustration (Photo: Unsplash)

JAKARTA - Indonesia is considered to need to increase battery production capacity. This is because it is only estimated to have 10 gigawatt hours (GWh) or less than 0.4 percent of global battery production capacity in 2024.

Managing Director of the Energy Shift Institute, Putra Adhiguna, assessed that so far the added value of various Indonesian nickel products ranges from two to 11 times that of the raw product. However, this value is still far below the added value of more than 60 times if it reaches battery production.

In fact, Putra continued, policy construction aimed at increasing Indonesia's nickel competitiveness relies on promises to develop the battery and electric vehicle industries.

"The Energy Shift Institute estimates that this year Indonesia will only have 10 gigawatt-hours (GWh) or less than 0.4 percent of global battery production capacity, 2,800 GWh," Putra said, citing Antara.

If Indonesia's battery production capacity is not increased, Putra believes that Indonesia will only shift from being an exporter of nickel products for stainless steel to being an exporter of semi-finished products for the battery industry.

"It is important for the various parties involved not to underestimate the scale of future growth because the world's battery-based electric motor vehicle (KBLBB) revolution has just entered its initial stages," he said.

Regarding the rapid growth of batteries without nickel and the debate on the future of nickel, Putra actually said that world demand for nickel for batteries is very likely to continue to soar.

This increase, he said, could occur in line with the rate of KBLBB adoption despite the presence of alternative technology.

"It is important to note that in a rapidly growing sector, absolute growth figures are more important than market share," said Putra.

Putra is of the view that apart from nickel, what often goes unnoticed is the increase in cobalt production by Indonesia as the second-largest cobalt producer in the world.

"This further emphasizes the importance of optimal management of natural resources," he also said.