Indonesia Supplies 45% of EV Battery Raw Materials, But Processing Still Done in China

Jakarta – PT Indonesia Battery Corporation (IBC) revealed that approximately 40 to 45 percent of the world's electric vehicle (EV) battery raw materials originate from Indonesia. However, these materials are still being sent to China for further processing before being distributed globally.

"On a global scale, nearly 40-45 percent of EV batteries come from Indonesia. However, the raw materials are sent to China for processing before being marketed worldwide," said IBC President Director Toto Nugroho during a hearing with Commission XII of the House of Representatives (DPR) on Monday (Feb 17, 2025).

Once processed in China, the EV batteries are then shipped to markets in Europe and the United States.

"In reality, the primary source of EV batteries is in Indonesia, but full downstream processing has yet to take place within the country," Toto added.

EV Battery Production Requires Significant Investment

Toto explained that manufacturing EV batteries is a complex process, requiring stages such as mining, smelting, chemical preparation, and battery cell production.

"From an investment perspective, this process demands substantial capital and time. For instance, PT ANTAM will manage the mining and smelting stages to produce battery precursors. These precursors will then be further processed into cathodes, the most valuable component in a battery cell," he elaborated.

Jokowi Confident Indonesia Can Dominate EV Industry

Meanwhile, President Joko Widodo expressed confidence that Indonesia could become a major player in the global EV industry, supported by its abundant natural resources, including nickel, bauxite, and copper, as well as smelter facilities capable of producing cathodes.

"Indonesia has all the necessary raw materials, from nickel to smelters for cathode production. If the EV ecosystem, including battery factories and car manufacturing plants, is fully integrated domestically, then who can challenge us?" Jokowi stated during the inauguration of South Korea's Battery and Electric Vehicle Ecosystem in Karawang, West Java, on Wednesday (July 3, 2025).

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