Indonesia, a resource-rich nation, is setting its sights on Africa as a significant market for locally produced electric vehicle (EV) batteries. Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, recently announced this strategic move, recognizing the continent's growth potential and abundant cobalt resources.
Source :
https://evlife.my/blog/indonesia-aims-to-tap-africa%27s-ev-battery-market
Why Africa?
1. Population Growth: By 2045, Africa's population is estimated to double, making it a substantial market for EVs. Indonesia aims to capitalize on this demographic shift.
2. Cobalt Supply: Africa boasts a better cobalt supply than Indonesia. Collaborating with African countries allows Indonesia to access this critical resource for EV batteries.
Key Developments
- First EV Battery Plant: On July 3, Indonesia launched its first EV battery plant—a joint venture between South Korean manufacturers Hyundai Motor Group and LG Energy Solution. This facility can produce up to 10 gigawatt hours (GWh) of battery cells annually.
- Ongoing Partnerships: Indonesia already collaborates with African countries in various sectors. State-owned oil and gas firm Pertamina has worked with Kenya, while state-owned utility company PT PLN has partnered with South Africa.
Challenges and Ambitions
- Production Share: Despite efforts to boost local battery production, Indonesia is expected to contribute less than 0.4% of the world's total EV battery energy in 2024. However, President Joko Widodo's vision positions Indonesia as a global player in the EV supply chain.
- CATL's Delayed Plan: China's Contemporary Amperex Technology Co (CATL) planned to construct an EV battery plant in Indonesia but faced delays. State-owned miner PT Antam is set to partner with CATL for this project.
Conclusion
Indonesia's strategic move to target Africa's EV battery market aligns with its ambition to become a key player in the global EV industry. By leveraging Africa's cobalt resources and fostering collaborations, Indonesia aims to drive sustainable growth in the electric mobility sector.
Indonesia, a resource-rich nation, is setting its sights on Africa as a significant market for locally produced electric vehicle (EV) batteries. Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, recently announced this strategic move, recognizing the continent's growth potential and abundant cobalt resources.
Source : https://evlife.my/blog/indonesia-aims-to-tap-africa%27s-ev-battery-market
Why Africa?
1. Population Growth: By 2045, Africa's population is estimated to double, making it a substantial market for EVs. Indonesia aims to capitalize on this demographic shift.
2. Cobalt Supply: Africa boasts a better cobalt supply than Indonesia. Collaborating with African countries allows Indonesia to access this critical resource for EV batteries.
Key Developments
- First EV Battery Plant: On July 3, Indonesia launched its first EV battery plant—a joint venture between South Korean manufacturers Hyundai Motor Group and LG Energy Solution. This facility can produce up to 10 gigawatt hours (GWh) of battery cells annually.
- Ongoing Partnerships: Indonesia already collaborates with African countries in various sectors. State-owned oil and gas firm Pertamina has worked with Kenya, while state-owned utility company PT PLN has partnered with South Africa.
Challenges and Ambitions
- Production Share: Despite efforts to boost local battery production, Indonesia is expected to contribute less than 0.4% of the world's total EV battery energy in 2024. However, President Joko Widodo's vision positions Indonesia as a global player in the EV supply chain.
- CATL's Delayed Plan: China's Contemporary Amperex Technology Co (CATL) planned to construct an EV battery plant in Indonesia but faced delays. State-owned miner PT Antam is set to partner with CATL for this project.
Conclusion
Indonesia's strategic move to target Africa's EV battery market aligns with its ambition to become a key player in the global EV industry. By leveraging Africa's cobalt resources and fostering collaborations, Indonesia aims to drive sustainable growth in the electric mobility sector.
