Raw Materials for Electric Car Batteries in Indonesia: A Wealth of Opportunities!

Raw Materials for Electric Car Batteries in Indonesia: A Wealth of Opportunities!

Raw materials are crucial in developing the electric car battery industry globally. Indonesia is poised to play a significant role as a leading provider of these materials, including nickel, cobalt, aluminum, and tin.

This article highlights Indonesia’s potential as a primary supplier of raw materials for electric car batteries, driving progress in the global electric battery industry.

Nickel: Indonesia’s Riches

Did you know Indonesia holds half of the world’s nickel reserves, especially in Sulawesi? But it’s not just Sulawesi; according to data from Katadata Media Network, Maluku and Papua also boast significant nickel ore reserves, totaling 2.6 billion tons, 1.4 billion tons, and 60 million tons, respectively. 

Pulau dengan Potensi Nikel Terbesar di Indonesia

Source: databoks.katadata.co.id

This makes Indonesia the top global nickel producer and the holder of the largest nickel reserves.

Additionally, as of March 2024, the Ministry of Energy and Mineral Resources (ESDM) has received Work and Budget Plans (RKAB) from 107 Indonesian businesses, indicating a nickel production capacity of 152,619,780.56 tons for the 2024-2026 period. This data emphasizes nickel as the most produced commodity among minerals, showcasing Indonesia’s substantial nickel potential.

Nickel is the primary raw material for lithium-ion batteries, which power environmentally friendly secondary batteries used in electric cars, mobile phones, and MP3 players.

Cobalt: Essential for Modern Batteries

Although not as abundant as nickel, cobalt is also plentiful in Indonesia and serves as a raw material for electric car batteries. With Indonesia’s production of 10,000 metric tons of cobalt in 2022, it became the world’s second-largest producer.

Like nickel, cobalt is vital in battery production, especially in lithium-ion batteries, which are known for their environmental friendliness and long lifespan of up to 10 years.

Aluminum: Untapped Resource

Indonesia doesn’t just hold nickel and cobalt reserves; it also boasts significant bauxite reserves, which are the primary source of aluminum for electric car battery materials. In fact, with a potential reserve of 1 billion metric tons, Indonesia ranks as the sixth-largest holder of bauxite reserves globally.

Aluminum derived from bauxite plays a pivotal role in manufacturing various batteries, including lithium-ion (Li-ion) batteries, known for their rechargeable nature and ideal for electric car batteries.

Tin: A Time-Honored Role

Tin is Indonesia’s natural wealth portfolio and a crucial supplier of electric car battery materials. In the United States Geological Survey (USGS) report 2023, Indonesia secured the third position globally as the largest tin producer, with an estimated production volume of 52 thousand metric tons.

10 Countries with the Largest Estimated Volume of Tin Production Globally (2023)

Negara dengan Estimasi Volume Produksi Timah Terbesar Global (2023)

Source: databoks.katadata.co.id

Tin is crucial in battery production, especially lead-acid batteries, and is commonly used to provide high current during vehicle startup or engine ignition.

Indonesia’s Role in the Global Electric Battery Industry

Indonesia’s potential to become a significant player in the global electric battery industry significantly impacts people’s lives.

Firstly, there’s the economic impact. Advancements in the electric battery industry can potentially drive Indonesia’s economic growth by fostering increased investment in infrastructure, research, and battery production, creating new job opportunities, and enhancing productivity. Additionally, exporting raw materials and finished electric car battery products can bolster national income and mitigate trade deficits.

Secondly, there’s the social impact. This potential is highlighted by creating new jobs, ranging from raw material mining to battery production and distribution. This increase in job opportunities can potentially improve income and welfare, especially for local communities in resource-rich areas.

Lastly, there’s the environmental impact. Embracing electric car batteries as eco-friendly energy sources can significantly reduce greenhouse gas emissions, air pollution, and reliance on fossil fuels. However, it also challenges sustaining natural resources, including sustainable mining practices and reducing environmental impacts from production processes.

According to projections from the Ministry of Energy and Mineral Resources (ESDM), the electric car battery industry is expected to witness rapid growth in the coming years. This growth will likely escalate demand for battery raw materials, offering Indonesia opportunities to expand its global market share.

In conclusion, Indonesia’s pivotal role and potential in the global electric car battery industry extend beyond government initiatives; private entities like INVI are also actively leveraging these raw materials by providing electric vehicles (EVs) and electric chargers in Indonesia. It’s imperative for society to actively contribute to the development of a sustainable electric battery industry by harnessing and appreciating the country’s natural resources for a brighter and more eco-friendly future.