| Study Period | 2019 - 2032 |
| Market Size in 2025 | USD 900.0 Million |
| Market Size in 2026 | USD 1000.8 Million |
| Market Size by 2032 | USD 1985.9 Million |
| Projected CAGR | 12% |
| Largest Province | Java |
| Fastest-Growing Province | North Maluku |
| Market Structure | Consolidated |
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The Indonesian EV battery market values USD 900.0 million in 2025, and it is projected to reach USD 1985.9 million by 2032, growing at a CAGR of 12.0% during 2026–2032. The market expansion is underpinned by the country's strategic position as the world's largest nickel producer, aggressive government policies promoting electric vehicle adoption, and substantial foreign investments in battery manufacturing infrastructure. Indonesia holds approximately 22% of global nickel reserves, a critical raw material for lithium-ion battery production, positioning the nation as a pivotal player in the global EV supply chain.
The Indonesian government has set ambitious targets to deploy 2 million electric cars and 12 million electric two-wheelers by 2030. This policy framework has catalyzed significant growth in the domestic EV market. The establishment of a 10-GWh EV battery cell manufacturing facility by PT HLI Green Power in West Java marks a milestone for the regional battery industry.
The lithium-ion category holds the largest share in the Indonesian EV battery market in 2025, of 90%, and it is expected to have the highest CAGR of 12.2% over the forecast period. This dominance stems from the superior energy density, longer cycle life, and declining production costs of lithium-ion technology compared to alternatives. The category benefits from Indonesia's integrated nickel-to-battery supply chain, enabling domestic production of nickel-rich cathode materials essential for high-performance lithium-ion cells. Major investments in lithium-ion cell manufacturing, including the 10-GWh HLI Green Power facility and CATL's planned 15-GWh plant, reinforce this category’s market lead.
These battery types are covered:
The BEV category held the largest share in the Indonesian EV battery market by propulsion type in 2025, accounting for approximately 75%. This category's dominance reflects the government's prioritization of full electrification, with substantial incentives specifically targeting battery electric vehicles. The removal of luxury goods sales tax exclusively for BEVs, combined with VAT reductions, has made pure electric vehicles increasingly affordable for Indonesian consumers.
The PHEV category is expected to witness the fastest growth with a CAGR of 12.1% during the forecast period, with demand driven by consumers seeking a transitional solution between conventional and fully electric vehicles. PHEVs address range anxiety concerns while offering electric-only driving capability for urban commuting. Japanese automakers are increasingly introducing PHEV models to the Indonesian market, leveraging their established service networks and consumer trust. The category benefits from flexibility in charging infrastructure requirements, as vehicles can operate on conventional fuel when charging stations are unavailable.
These propulsions are covered:
The scooters & motorcycles category holds the largest share in the Indonesian EV battery market, of 45%. Indonesia ranks as the world's third-largest two-wheeler market, with over 126 million motorcycles and scooters registered across the archipelago. The government's subsidy program and the inherently lower battery capacity requirements of two-wheelers make this segment highly accessible to mass consumers. Manufacturers, including Yadea, Gesits, SWAP, and Gogoro, are actively expanding their presence in this high-volume segment.
Passenger cars represent the fastest-growing category, driven by increasing model availability from global manufacturers, including Hyundai, BYD, Wuling, and Chery. The establishment of local manufacturing facilities by these automakers ensures a consistent supply of competitively priced EVs, stimulating battery demand. Battery capacity requirements for passenger cars typically range from 40 kWh to 80 kWh, creating substantial demand for domestic lithium-ion cell production.
These vehicle types are covered:
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Java holds the largest share in the Indonesian EV battery market in 2025, of 45%, and it is expected to maintain its dominant position throughout the forecast period. The island serves as Indonesia's industrial and economic heartland, hosting the nation's largest urban population centers, including Jakarta, Surabaya, and Bandung. West Java Province received USD 8.3 billion in foreign direct investment in 2023, the highest in Indonesia. The Bekasi–Karawang–Purwakarta industrial corridor houses Indonesia's primary automotive manufacturing cluster, including Hyundai's EV plant, the HLI Green Power battery cell facility, and the planned CATL battery manufacturing complex.
The concentration of EV manufacturing and battery production facilities in West Java creates a self-reinforcing ecosystem, attracting additional investment and skilled labor. Jakarta's role as the pilot city for public transportation electrification, including TransJakarta bus conversion, generates additional battery demand. The island's superior charging infrastructure, with the majority of Indonesia's 2,490 public charging stations concentrated in Greater Jakarta, Bandung, and Surabaya, supports higher EV adoption rates compared to other regions.
North Maluku is expected to witness the fastest growth in the Indonesian EV battery market during the forecast period, driven by massive investments in nickel processing and battery material production. The province attracted USD 5 billion in foreign direct investment in 2023, primarily in the nickel sector, making it one of Indonesia's most dynamic regions for industrial development. The Indonesia Weda Bay Industrial Park hosts multiple high-pressure acid leaching facilities producing battery-grade nickel intermediate products. According to industry projections, the province is set to begin independent lithium-ion battery cell production by mid-2026, with planned capacity of 8 GWh expanding to 20 GWh by 2027.
The strategic importance of North Maluku stems from its position in the upstream battery supply chain. While finished battery cell production primarily occurs in West Java, the province supplies critical precursor materials, including mixed hydroxide precipitate and nickel sulfate. Government plans to develop a dedicated Battery Industry Zone with integrated port facilities and power plants, which will further strengthen the province's role in the national EV battery ecosystem.
These provinces are covered:
The Indonesian EV battery market exhibits a consolidated competitive structure, and it is characterized by strong participation from Korean, Chinese, and Japanese battery manufacturers, alongside Indonesian state-owned enterprises coordinating the national battery development strategy. Competition intensifies as global battery giants expand their Indonesian presence.
Key competitive strategies include vertical integration, local content optimization, and technology partnerships with domestic automotive manufacturers. Companies achieving the 40% local content threshold benefit from preferential tax treatment, creating incentives for localization of component sourcing. The government's requirement for EV importers to establish domestic manufacturing by 2026 is attracting additional battery-related investments, as automakers seek to secure integrated supply chains. Japanese manufacturers, traditionally dominant in Indonesia's automotive sector, are increasingly pivoting toward hybrid and EV battery technology partnerships to maintain market relevance.
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