Asia & Pacific
Nickel-based batteries used by many South Korean manufacturers face increasing competition from lithium iron phosphate (LFP) batteries, which contain no nickel and are generally cheaper to produce.
A worker installs the battery of a Hyundai IONIQ 5 electric car on April 6, 2023, at the Hyundai Motor Manufacturing Indonesia (HMMI) assembly plant in Cikarang, West Java. (JP/Rachmat Kurniawa)
South Korea is seeking incentives and regulatory support from Indonesia for nickel-based batteries as Seoul looks to deepen cooperation in critical minerals and strengthen the two countries’ electric vehicle supply chain.The proposal, raised during a discussion with the South Korean Embassy last week, came as nickel-based batteries face growing competition from cheaper alternatives that do not use the mineral, potentially weakening a key pillar of South Korean manufacturers’ partnership with Indonesia, the world’s largest nickel producer.
“We are really looking to the Indonesian government to provide incentives and ease regulations on batteries using nickel,” Uhm Taeho, counsellor and political section chief at the South Korean Embassy, told reporters on Aug. 26 in Central Jakarta.
