In recent years, the battery industry has established itself mainly in Asia, so that the material manufacturers there have entered the supplier market. With the growing demand for battery cells (partly also due to the availability of raw materials there), they scaled their production volumes.
Asia's already-strong foothold in the global car manufacturing industry positions it well for the surge in demand for electric vehicles (EVs) and their associated batteries. Dominating with over 70% of global EV production, battery manufacturing, and critical mineral refining, China is currently the leader.
As the momentum for electric vehicles continues to grow, Asia's investment landscape is coming to terms with impending supply chain constraints. One pressing concern lies with the availability of battery metals. The current reserves and production rates are unlikely to meet the skyrocketing demand in the near future.
Investment minister Bahlil Lahadalia said the South Korean companies would begin constructing the second phase of the battery cell factory, which will have an annual production capacity of 20 gigawatt hours, with an investment of $2bn. The battery cells from the Indonesian plant will be used in Hyundai and Kia’s EV models.
The launch of the country’s first battery plant on Wednesday is part of Indonesia ’s push to move up the global EV supply chain. Indonesia has the world’s largest reserves of nickel, a crucial component in EV batteries and steelmaking.
The plant’s products will be shipped to Hyundai subsidiaries in India and South Korea. — AFP JAKARTA: Rows of robotic arms move with precision to assemble nickel-based battery cells on the production line at Indonesia’s inaugural electric vehicle (EV) battery plant, the first in South-East Asia.
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