Indonesia Battery Corporation (IBC) plans to establish an electric vehicle (EV) battery recycling plant by 2031 to promote nickel sustainability and support green energy initiatives. According to IBC’s President Director, advanced recycling technology can recover over 99% of battery components, ensuring the efficient reuse of nickel from EV batteries. The initiative aligns with Indonesia’s broader efforts to create a sustainable nickel industry, given the country’s status as the world’s largest producer of nickel, a key component in EV batteries.
The recycling plant will be integrated into Indonesia’s broader EV battery industry ecosystem, addressing concerns about the recyclability of nickel-based batteries. The President Director emphasized that building a complete EV battery industry ecosystem is a complex process requiring multiple stages, including nickel mining, smelting, chemical processing, and battery production, all of which demand significant time and investment.
On the demand side, he highlighted that electric motorbikes and cars are the primary consumers of batteries, with the EV market experiencing rapid growth. The number of electric cars in Indonesia nearly doubled from tens of thousands in 2023 to an estimated 40,000 units in 2024. This trend highlights the growing consumer acceptance of EVs, driven by government incentives, expanding charging infrastructure, and rising fuel costs. In addition to electric vehicles, battery demand is expected to come from the renewable energy sector, particularly for battery energy storage systems (BESS). With many renewable energy power plants facing intermittency issues—such as solar power plants that depend on sunlight—BESS solutions are becoming essential for stabilizing the energy supply.
Through its battery recycling plant initiative, IBC aims to reinforce Indonesia’s commitment to sustainability, reduce battery-related environmental risks, and enhance resource efficiency. By closing the loop in the battery value chain, Indonesia is positioning itself as a leader in EV battery production and recycling, supporting the global shift toward greener and more sustainable energy solutions.
(Source: Indonesia Business Post)
