Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that Indonesia has started its first export of electric vehicle (EV) battery precursors to the United States this month, intended for Elon Musk's company, Tesla. The precursors come from a nickel processing plant located in the Weda Bay Industrial Zone on Halmahera Island, North Maluku. Bahlil stated that this export is part of the government’s nickel downstreaming efforts to increase the added value of domestic mineral exports, while simultaneously building a complete electric vehicle battery ecosystem. According to him, the government aims to make Indonesia one of the first countries to develop a full EV battery ecosystem, from mining, smelting, HPAL, precursors, cathodes, to battery cells and recycling.
Although Bahlil refrained from revealing the exact amount of precursors being shipped to Tesla, he emphasized that the government would continue to push for downstreaming to accelerate the development of the domestic battery industry. He believes that the steps Indonesia has taken so far, such as building the necessary infrastructure, will make the country an increasingly attractive destination for foreign investment. With about 70-80% of the battery ecosystem already in place, Bahlil is optimistic that Indonesia will become a key destination for investors interested in the global nickel and electric vehicle battery industries.
