The Indonesia EV battery market was valued at USD 1.35 billion in 2025. It is estimated at USD 1.75 billion in 2026 and is projected to reach USD 9.55 billion by 2036, growing at a CAGR of 18.5% over the 2026-2036 forecast period. This report provides a detailed assessment of the market, covering the nickel and battery materials value chain, operating and planned cell capacity, the domestic electric vehicle market, downstreaming policy, incentives and local content rules, export market requirements, ESG issues, and the competitive landscape.
The study covers lithium-ion and other batteries made or supplied in Indonesia for electric mobility, including cells, modules, and packs used in battery electric, plug-in hybrid, and hybrid cars, in electric motorcycles and three-wheelers, and in e-buses and commercial fleets, whether sold at home or shipped abroad. Chemistries include nickel-based NMC and NCA, LFP, and newer options such as sodium-ion and LMFP. Market value is counted at the cell, module, and pack stage. Nickel mining and processing, precursors, and cathode materials are examined as part of the value chain but are not counted in market value. The ecosystem includes miners and smelters, materials producers, cell makers, pack assemblers, vehicle and motorcycle manufacturers, the state battery holding company IBC, and government agencies.
Indonesia's strategy rests on nickel, as the country accounts for over half of global mine output according to the U.S. Geological Survey, and since January 2020 it has barred exports of nickel ore to force domestic processing, which brought a wave of smelters and high-pressure acid leaching plants, mostly financed and run by Chinese companies in the Morowali (Central Sulawesi) and Weda Bay (North Maluku) industrial parks. The country is now moving into cells. HLI Green Power opened Indonesia's first EV cell plant in Karawang in 2024 with up to 10 gigawatt-hours a year, and in June 2025 a CATL-led consortium started building a battery ecosystem worth about USD 6 billion, whose Karawang cell plant is due to start by the end of 2026 at 6.9 gigawatt-hours and later reach 15 gigawatt-hours.
LG Energy Solution's decision in April 2025 to leave the Indonesia Grand Package, a battery supply chain program agreed with the government in late 2020 and reported at Rp 142 trillion, has raised concerns about investment risk, although it continues to run HLI Green Power. The global move toward LFP weakens the value of Indonesia's nickel advantage; according to the International Energy Agency, LFP made up nearly half of the global EV battery market in 2024. Coal-powered nickel processing, tailings from acid leaching, deforestation, and labor issues raise ESG concerns for buyers subject to the EU Battery Regulation and U.S. foreign-entity sourcing rules. The domestic EV market is still a small part of total car sales and relies heavily on incentives. Further challenges include rising TKDN local content thresholds, gaps in local supply of separators, electrolyte, and equipment, power and logistics needs, dependence on foreign partners for skills and technology, and competition from China, Thailand, and other hubs.
Electric two-wheelers are the largest opportunity, as Indonesia has well over 100 million registered motorcycles and in 2023 began offering buyers IDR 7 million toward each electric motorcycle, while battery swapping networks are being built. Solar storage batteries, cell exports, and recycling, helped by the role of CATL's recycling unit Brunp in the project, offer further growth. Key trends include Chinese-led integrated battery ecosystems, local production of LFP and storage batteries, vertical integration from mine to cell, and the localization of EV assembly by Hyundai, BYD, Wuling, and VinFast.
Based on battery chemistry, the market is segmented into NMC/NCA, LFP, and others (sodium-ion and LMFP). NMC/NCA batteries are expected to hold the largest share in 2026, as the country's only operating cell plant, HLI Green Power, makes nickel-based cells and national policy is built around nickel supply for high-energy chemistries. These cells also supply Hyundai's local EV assembly. LFP batteries are expected to grow at the highest CAGR during the forecast period, driven by Chinese carmakers such as BYD and Wuling that favor LFP, the spread of electric motorcycles that typically use LFP packs, and plans to add storage batteries at the CATL site. Sodium-ion and LMFP remain early-stage options that could broaden the chemistry mix later in the forecast period.
By product, the report covers cells and modules & packs. Cells are expected to account for the larger share in 2026, reflecting output from HLI Green Power and the planned start of CATL's Karawang plant at the end of that year, both of which represent large blocks of value. Modules & packs are expected to register the higher CAGR, as local assembly of packs for domestic car and two-wheeler production helps manufacturers meet local content requirements and qualify for incentives, and as pack assembly spreads to regional vehicle plants.
The vehicle type analysis spans passenger cars, two- & three-wheelers, and buses & commercial vehicles. Passenger cars are expected to hold the largest share in 2026, since each car carries a much larger battery than a motorcycle and domestic EV car sales have reached a meaningful scale. Two- & three-wheelers are expected to grow at the highest CAGR, supported by the country's very large motorcycle fleet, government purchase subsidies, demand from delivery and ride-hailing riders, and the rollout of battery swapping. Electric buses and commercial vehicles form a smaller segment linked to public transport and fleet programs.
Based on propulsion, the market is segmented into battery electric vehicles, plug-in hybrid electric vehicles, and hybrid electric vehicles. Battery electric vehicles use the largest packs and benefit most from the value-added tax reduction and the duty-free import scheme tied to local production, which makes them central to cell demand from Hyundai, BYD, Wuling, and VinFast. Plug-in hybrids and hybrids use smaller batteries but widen the range of electrified models available to buyers concerned about charging access and resale value. The report assesses battery demand across all three propulsion types.
By market destination, the study splits demand into domestic and export. Domestic supply is expected to hold the larger share in 2026, as locally made cells are supplied mainly to vehicle assembly within Indonesia, including Hyundai's EV production. The export segment is expected to grow at the higher CAGR, as planned cell capacity is set to exceed domestic needs, officials have said CATL project cells will be sold abroad, and Indonesia sits close to fast-growing EV markets in Southeast Asia and India.
West Java is expected to lead the Indonesia EV battery market in 2026, as it is home to the country's cell production and much of its vehicle assembly. Karawang hosts HLI Green Power's plant and the CATL joint venture cell plant under construction, and the Karawang, Bekasi, and Subang industrial corridor includes Hyundai's EV production and new plants by Chinese and Vietnamese carmakers.
Central Java is expected to grow at the highest CAGR during the forecast period, supported by large integrated estates such as Batang, which officials have marketed to battery and EV investors, and by lower labor costs than the West Java corridor, making it a candidate for new battery and materials projects. Sulawesi, through the Morowali Industrial Park in Central Sulawesi and the Pomalaa area in Southeast Sulawesi, is the center of nickel smelting and acid leaching that supplies battery-grade intermediates. North Maluku is expected to grow strongly as a materials hub, with the Weda Bay Industrial Park and the CATL project's integrated industrial park in East Halmahera, which is planned to use solar power and waste heat recovery. The Riau Islands, led by Batam's special economic zones near Singapore, and other regions in Java, Sumatra, and Kalimantan hold smaller shares, with potential in pack assembly, storage projects, and electric motorcycles.
The market is shaped by partnerships between Indonesian state-owned companies and foreign cell makers and carmakers, alongside Chinese nickel and materials producers operating in industrial parks. Companies compete and cooperate on access to nickel, cell technology, production scale and cost, local content compliance, government support, and links with carmakers and export buyers. Leading players are building integrated projects from nickel to cells, localizing vehicle and pack production, adding LFP and storage capacity, and addressing ESG and export rules. Notable developments include HLI Green Power's 2024 plant launch, LG Energy Solution's exit from the Grand Package program in April 2025, and the June 2025 groundbreaking of the CATL project with Indonesia Battery Corporation, PT Aneka Tambang, Brunp, and Lygend Resources, which President Prabowo Subianto described as proof of cooperation with Chinese partners.
Key companies profiled in the report include PT Industri Baterai Indonesia (Indonesia Battery Corporation) (Indonesia), PT Aneka Tambang Tbk (Antam) (Indonesia), MIND ID (Indonesia), PT Trimegah Bangun Persada Tbk (Harita Nickel) (Indonesia), PT Vale Indonesia Tbk (Indonesia), Contemporary Amperex Technology Co., Limited (CATL) (China), PT HLI Green Power (Indonesia), LG Energy Solution, Ltd. (South Korea), Hyundai Motor Group (South Korea), BYD Company Limited (China), SAIC-GM-Wuling (China), Zhejiang Huayou Cobalt Co., Ltd. (China), GEM Co., Ltd. (China), Lygend Resources & Technology Co., Ltd. (China), and Tsingshan Holding Group (China).
The study covers lithium-ion and other batteries made or supplied in Indonesia for electric mobility, including cells, modules, and packs used in battery electric, plug-in hybrid, and hybrid cars, in electric motorcycles and three-wheelers, and in e-buses and commercial fleets, whether sold at home or shipped abroad. Chemistries include nickel-based NMC and NCA, LFP, and newer options such as sodium-ion and LMFP. Market value is counted at the cell, module, and pack stage. Nickel mining and processing, precursors, and cathode materials are examined as part of the value chain but are not counted in market value. The ecosystem includes miners and smelters, materials producers, cell makers, pack assemblers, vehicle and motorcycle manufacturers, the state battery holding company IBC, and government agencies.
Indonesia's strategy rests on nickel, as the country accounts for over half of global mine output according to the U.S. Geological Survey, and since January 2020 it has barred exports of nickel ore to force domestic processing, which brought a wave of smelters and high-pressure acid leaching plants, mostly financed and run by Chinese companies in the Morowali (Central Sulawesi) and Weda Bay (North Maluku) industrial parks. The country is now moving into cells. HLI Green Power opened Indonesia's first EV cell plant in Karawang in 2024 with up to 10 gigawatt-hours a year, and in June 2025 a CATL-led consortium started building a battery ecosystem worth about USD 6 billion, whose Karawang cell plant is due to start by the end of 2026 at 6.9 gigawatt-hours and later reach 15 gigawatt-hours.
Market Dynamics
Nickel downstreaming is the core driver, as the government aims to move from ore and intermediates into precursors, cathodes, and cells, creating a strong case for battery production close to raw materials. Investment in cell manufacturing is a second driver: HLI Green Power is planning a second phase, and the CATL project links nickel mining, smelting, and precursor output in East Halmahera, North Maluku, with cell production in West Java, with the energy minister stating that capacity could reach up to 40 gigawatt-hours including storage batteries by 2028. Domestic electric vehicle adoption adds demand, backed by a lower value-added tax for cars that meet local content rules, duty-free imports of built-up EVs for makers that commit to local assembly, and subsidies for electric motorcycles. Battery electric car sales passed 40,000 units in 2024.LG Energy Solution's decision in April 2025 to leave the Indonesia Grand Package, a battery supply chain program agreed with the government in late 2020 and reported at Rp 142 trillion, has raised concerns about investment risk, although it continues to run HLI Green Power. The global move toward LFP weakens the value of Indonesia's nickel advantage; according to the International Energy Agency, LFP made up nearly half of the global EV battery market in 2024. Coal-powered nickel processing, tailings from acid leaching, deforestation, and labor issues raise ESG concerns for buyers subject to the EU Battery Regulation and U.S. foreign-entity sourcing rules. The domestic EV market is still a small part of total car sales and relies heavily on incentives. Further challenges include rising TKDN local content thresholds, gaps in local supply of separators, electrolyte, and equipment, power and logistics needs, dependence on foreign partners for skills and technology, and competition from China, Thailand, and other hubs.
Electric two-wheelers are the largest opportunity, as Indonesia has well over 100 million registered motorcycles and in 2023 began offering buyers IDR 7 million toward each electric motorcycle, while battery swapping networks are being built. Solar storage batteries, cell exports, and recycling, helped by the role of CATL's recycling unit Brunp in the project, offer further growth. Key trends include Chinese-led integrated battery ecosystems, local production of LFP and storage batteries, vertical integration from mine to cell, and the localization of EV assembly by Hyundai, BYD, Wuling, and VinFast.
Segment Analysis
The report analyzes the market by battery chemistry, product, vehicle type, propulsion, market destination, and region, helping stakeholders identify where production and demand are concentrated and where they are expanding.Based on battery chemistry, the market is segmented into NMC/NCA, LFP, and others (sodium-ion and LMFP). NMC/NCA batteries are expected to hold the largest share in 2026, as the country's only operating cell plant, HLI Green Power, makes nickel-based cells and national policy is built around nickel supply for high-energy chemistries. These cells also supply Hyundai's local EV assembly. LFP batteries are expected to grow at the highest CAGR during the forecast period, driven by Chinese carmakers such as BYD and Wuling that favor LFP, the spread of electric motorcycles that typically use LFP packs, and plans to add storage batteries at the CATL site. Sodium-ion and LMFP remain early-stage options that could broaden the chemistry mix later in the forecast period.
By product, the report covers cells and modules & packs. Cells are expected to account for the larger share in 2026, reflecting output from HLI Green Power and the planned start of CATL's Karawang plant at the end of that year, both of which represent large blocks of value. Modules & packs are expected to register the higher CAGR, as local assembly of packs for domestic car and two-wheeler production helps manufacturers meet local content requirements and qualify for incentives, and as pack assembly spreads to regional vehicle plants.
The vehicle type analysis spans passenger cars, two- & three-wheelers, and buses & commercial vehicles. Passenger cars are expected to hold the largest share in 2026, since each car carries a much larger battery than a motorcycle and domestic EV car sales have reached a meaningful scale. Two- & three-wheelers are expected to grow at the highest CAGR, supported by the country's very large motorcycle fleet, government purchase subsidies, demand from delivery and ride-hailing riders, and the rollout of battery swapping. Electric buses and commercial vehicles form a smaller segment linked to public transport and fleet programs.
Based on propulsion, the market is segmented into battery electric vehicles, plug-in hybrid electric vehicles, and hybrid electric vehicles. Battery electric vehicles use the largest packs and benefit most from the value-added tax reduction and the duty-free import scheme tied to local production, which makes them central to cell demand from Hyundai, BYD, Wuling, and VinFast. Plug-in hybrids and hybrids use smaller batteries but widen the range of electrified models available to buyers concerned about charging access and resale value. The report assesses battery demand across all three propulsion types.
By market destination, the study splits demand into domestic and export. Domestic supply is expected to hold the larger share in 2026, as locally made cells are supplied mainly to vehicle assembly within Indonesia, including Hyundai's EV production. The export segment is expected to grow at the higher CAGR, as planned cell capacity is set to exceed domestic needs, officials have said CATL project cells will be sold abroad, and Indonesia sits close to fast-growing EV markets in Southeast Asia and India.
Regional Analysis
The report analyzes the market across West Java, Central Java, Sulawesi (Central Sulawesi and Southeast Sulawesi), North Maluku, the Riau Islands, and other regions covering the rest of Java, Sumatra, and Kalimantan. The regional analysis considers cell and pack plants, vehicle assembly, nickel processing and materials supply, industrial estates, infrastructure, and incentive programs.West Java is expected to lead the Indonesia EV battery market in 2026, as it is home to the country's cell production and much of its vehicle assembly. Karawang hosts HLI Green Power's plant and the CATL joint venture cell plant under construction, and the Karawang, Bekasi, and Subang industrial corridor includes Hyundai's EV production and new plants by Chinese and Vietnamese carmakers.
Central Java is expected to grow at the highest CAGR during the forecast period, supported by large integrated estates such as Batang, which officials have marketed to battery and EV investors, and by lower labor costs than the West Java corridor, making it a candidate for new battery and materials projects. Sulawesi, through the Morowali Industrial Park in Central Sulawesi and the Pomalaa area in Southeast Sulawesi, is the center of nickel smelting and acid leaching that supplies battery-grade intermediates. North Maluku is expected to grow strongly as a materials hub, with the Weda Bay Industrial Park and the CATL project's integrated industrial park in East Halmahera, which is planned to use solar power and waste heat recovery. The Riau Islands, led by Batam's special economic zones near Singapore, and other regions in Java, Sumatra, and Kalimantan hold smaller shares, with potential in pack assembly, storage projects, and electric motorcycles.
Competitive Landscape
The report provides a detailed review of the competitive landscape, covering key growth strategies, competitive benchmarking, the competitive dashboard with industry leaders, market differentiators, vanguards, and emerging companies, and market share/rank analysis for 2025. Company profiles cover business overview, financial overview, product portfolio, strategic developments, and SWOT analysis.The market is shaped by partnerships between Indonesian state-owned companies and foreign cell makers and carmakers, alongside Chinese nickel and materials producers operating in industrial parks. Companies compete and cooperate on access to nickel, cell technology, production scale and cost, local content compliance, government support, and links with carmakers and export buyers. Leading players are building integrated projects from nickel to cells, localizing vehicle and pack production, adding LFP and storage capacity, and addressing ESG and export rules. Notable developments include HLI Green Power's 2024 plant launch, LG Energy Solution's exit from the Grand Package program in April 2025, and the June 2025 groundbreaking of the CATL project with Indonesia Battery Corporation, PT Aneka Tambang, Brunp, and Lygend Resources, which President Prabowo Subianto described as proof of cooperation with Chinese partners.
Key companies profiled in the report include PT Industri Baterai Indonesia (Indonesia Battery Corporation) (Indonesia), PT Aneka Tambang Tbk (Antam) (Indonesia), MIND ID (Indonesia), PT Trimegah Bangun Persada Tbk (Harita Nickel) (Indonesia), PT Vale Indonesia Tbk (Indonesia), Contemporary Amperex Technology Co., Limited (CATL) (China), PT HLI Green Power (Indonesia), LG Energy Solution, Ltd. (South Korea), Hyundai Motor Group (South Korea), BYD Company Limited (China), SAIC-GM-Wuling (China), Zhejiang Huayou Cobalt Co., Ltd. (China), GEM Co., Ltd. (China), Lygend Resources & Technology Co., Ltd. (China), and Tsingshan Holding Group (China).
How This Report Helps
- Provides reliable market size estimates and long-term forecasts for the Indonesia EV battery market through 2036.
- Explains how nickel downstreaming, cell plant investment, and EV incentives are shaping battery production and demand.
- Assesses the impact of partner exits, the shift to LFP, ESG concerns, and incentive dependence on market growth.
- Identifies high-growth opportunities across battery chemistry, product, vehicle type, propulsion, market destination, and region.
- Tracks operating and planned cell capacity, integrated mine-to-cell projects, and storage and recycling initiatives.
- Benchmarks state-owned companies, cell makers, carmakers, and materials producers on capabilities, partnerships, and market position.
- Supports investment, partnership, site selection, sourcing, and market entry decisions for battery makers, automakers, materials suppliers, and investors.
Key Questions Answered
- How large is the Indonesia EV battery market today, and how will it grow through 2036?
- How will HLI Green Power and the CATL project change Indonesia's cell production capacity?
- What are the main drivers, restraints, opportunities, challenges, and trends shaping the market?
- How does the global shift toward LFP affect Indonesia's nickel-based battery strategy?
- Which battery chemistry, product, vehicle type, propulsion, and market destination segments will grow the fastest?
- How large is the opportunity in electric two-wheelers, energy storage, and battery exports?
- Which provinces and regions offer the most attractive opportunities for battery investment?
- Who are the leading companies in the market, and how do they compare?
- What joint ventures, investments, and partner changes are shaping competition?
Table of Contents
1. Introduction
2. Research Methodology
4. Market Overview
5. Indonesia EV Battery Market, by Battery Chemistry
6. Indonesia EV Battery Market, by Product
7. Indonesia EV Battery Market, by Vehicle Type
8. Indonesia EV Battery Market, by Propulsion
9. Indonesia EV Battery Market, by Market Destination
10. Indonesia EV Battery Market, by Region
11. Competitive Landscape
12. Company Profiles
13. Appendix
LIST OF TABLES
LIST OF FIGURES
Companies Mentioned
- PT Industri Baterai Indonesia
- PT Aneka Tambang Tbk
- MIND ID
- PT Trimegah Bangun Persada Tbk
- PT Vale Indonesia Tbk
- Contemporary Amperex Technology Co., Limited
- PT HLI Green Power
- LG Energy Solution, Ltd.
- Hyundai Motor Group
- BYD Company Limited
- SAIC-GM-Wuling
- Zhejiang Huayou Cobalt Co., Ltd.
- GEM Co., Ltd.
- Lygend Resources & Technology Co., Ltd.
- Tsingshan Holding Group
