Indonesia needs to introduce incentives to the recycling industry of electric vehicle (EV) batteries, according to an expert.
Bhima Yudhistira, the executive director of the economic think-tank Celios, said Tuesday that Indonesia could run out of nickel — a mainstay ingredient in EV battery production — if it continues to mine the metal.
“We should provide incentives to the EV battery recycling industry. … There are warnings that our nickel supply is not as much as we think. Mining associations have warned that the reserves would only last for 7-15 years,” Bhima said in Jakarta.
Bhima said the Indonesian government should provide the decades-long tax holidays that nickel smelters enjoyed. The Investment Affairs Coordinating Ministry revealed last August that nickel smelters with an investment of at least Rp 30 trillion (about $1.9 billion) were eligible for a 20-year holiday for its corporate income tax. Smelters with investments below Rp 30 trillion could only get a tax holiday that ranges between 5 and 15 years.
“The government can also try to help the recycled batteries get absorbed by the domestic automotive industry. Another possible incentive is a 0 percent export duty on recycled batteries,” Bhima said.
Indonesia is home to the world’s largest reserves of nickel.
Source: jakartaglobe.id
