IWIP to begin EV battery production in 2026

Indonesia is preparing to become an important player in the global battery industry. Head of an Industry Ministry Team, Ginanjar M., revealed that the ​PT Indonesia Weda Bay Industrial Park (IWIP) in Central Halmahera Regency, North Maluku Province will begin its independent production of lithium-ion battery cells and raw materials.

"The [ lithium-ion ] battery industry is estimated to be initiated at IWIP by mid-2026. We hope that the first step for [ lithium-ion ] battery cell and and raw material production made wholly domestically to be taken by that time," said Ginanjar in a focus group discussion (FGD) event at the Wyndham Casablanca Jakarta hotel on Feb. 12, 2025.

Ginanjar revealed that the planned lithium-ion battery production capacity by 2026 is 8 gigawatts/hour (GWh), and it would be increased to 20 GWh by 2027. Currently, he continued, Indonesia already has important raw materials for lithium-ion battery production, such as precursors and cathodes.

The EV battery industry's development, he said further, is not only about producing said batteries but also building its ecosystem. In the next few years, he hopes that Indonesia will be able to produce batteries with wholly domestic resources and technology. That would mark a significant development in Indonesia's efforts to reduce dependence on imported lithium-ionbattery raw materials and strengthen the country's position in the global electric vehicle (EV) and renewable energy market.

The first battery and EV factory and ecosystem in Indonesia was built by PT Hyundai LG Indonesia (HLI) Green Power in Karawang Regency, West Java Province. The battery factory was inaugurated by then-president Joko Widodo on Mar. 7, 2204. The establishment of the battery factory signifies Indonesia's commitment to enter the global lithium-ion battery and EV production competition.

PT HLI's first EV battery cell factory began commercial production of EV batteries in April 2024. In the first phase, HLI applied US$1.1 billion of investment to reach a production capacity of 10 GWh, consisting of 32.6 million battery cells that can power approximately 150,000 EVs. In the second phase that is expected by 2025, PT HLI plans to increase production capacity to 20 GWh.

Hyundai Motor Group Executive Chairman Euisun Chung, explained that the completion of the battery cell factory in Indonesia is a great source of pride. It is proof, he continued, of the progress Indonesia and Hyundai has achieved, and a sign of the strength of our joint partnership.

"Most importantly, this [the factory's completion] confirms that, by working together, Hyundai Motor Group and Indonesia are shaping the future of the EV ecosystem not only in Southeast Asia but also throughout the world," said Euisun during the factory's inauguration in 2024.

He also said that President Jokowi had set a target for Indonesia to produce 600,000 EVs domestically by 2030. Bahlil Lahadalia, then the Investment Minister/Investment Coordinating Board (BKPM) Hea, claimed that Indonesia was the country with the first true EV manufacturing ecosystem in the world, which integrated the supply chain from nickel raw materials, EV battery factories, to EV factories.

"After our discussion, we asked whether there was already one [other to achieve an EV ecosystem] in the world? it turns out that there is none other yet that has built an integrated EV battery ecosystem from the upstream, mining [of nickel] to cars. We, Indonesia, are the first to do this," said Bahlil.

He added that the investment value for the construction of the EV battery factory reached US$1.2-1.5 billion, which will be continued in the second year with an investment value of US$2 billion.

"This is a new chapter where we are all witnessing the inauguration of an integrated car battery factory," he concluded.