Indonesia Battery Market to Surge to USD 4.4 Billion by 2034 at 11.72% CAGR - Request Your Free Sample Report Today

A Comprehensive Introduction to the Indonesia Battery Market Report

According to IMARC Group's report titled "Indonesia Battery Market Size, Share, Trends and Forecast by Technology, Application, and Region, 2026-2034" the report offers a comprehensive analysis of the industry, including market share, growth, trends, and regional insights.

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Indonesia Battery Market Overview

The Indonesia battery market size was valued at USD 1.6 Billion in 2025. It is expected to reach USD 4.4 Billion by 2034, exhibiting a CAGR of 11.72% during the forecast period from 2026 to 2034.

The market growth is driven by increasing electric vehicle adoption, investments in domestic battery manufacturing, and the abundance of raw materials like nickel. Rising renewable energy integration and government incentives also support market expansion.

Key Takeaways

• Current Market Size: USD 1.6 Billion (2025)

• CAGR: 11.72%

• Forecast Period: 2026-2034

• The market is propelled by rising demand for electric vehicles (EVs) and portable electronics in Indonesia.

• Domestic battery production investments and local raw material availability, especially nickel, provide significant growth impetus.

• Government incentives and improved logistics contribute to accelerating infrastructure deployment.

• Expansion of renewable energy and stricter emission regulations strengthen long-term market growth.

• Collaboration between public and private sectors enhances energy storage infrastructure and production capacity.

Indonesia Battery Market Growth Factors Points

• Rising demand for electric vehicles (EVs) and portable electronics is driving interest in establishing domestic battery manufacturing facilities, attracting higher-than-expected investment.

• Indonesia has a strong supply of raw materials, especially nickel reserves, which supports future expansion in battery production.

• Multiple industry-wide initiatives are underway, including public-private collaborations, to build a sustainable energy storage ecosystem.

• Government tax credits and incentives are promoting consumer adoption of EVs and encouraging the establishment of local battery production plants.

• Growth in renewable energy projects has increased the deployment of grid-scale battery storage systems to manage renewable power generation.

• The rise of digital transformation and remote work/telecommuting is boosting demand for high-performance portable device batteries.

• A growing middle-class population with higher disposable income is driving higher adoption of both traditional and alternative fuel vehicles.

• Increased consumer awareness programs are educating the public on the advantages of EV ownership, contributing to rising EV adoption.

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Indonesia Battery Market Trends

• Growing EV demand is driven by national government targets to reach 2 million electric cars and 12 million electric scooters by 2030.

• Tax incentives-including luxury tax elimination and import tax waivers-are accelerating consumer adoption of electric vehicles.

• Lithium-ion batteries remain the dominant EV battery technology due to their high energy density, efficiency, and compatibility with EV platforms.

• Increased integration of renewable energy sources is driving demand for convenience and grid-scale battery systems to support energy storage and grid stability.

• Notable renewable-storage projects include large solar + battery developments, such as a 50 MW solar farm paired with a 14 MWh lithium-ion storage system, producing approximately 93 GWh annually.

• The push toward reduced environmental pollution and sustainability goals is fueling growth in domestic lithium-ion battery production, enabled by Indonesia's substantial nickel
reserves and government-backed policies.

• Major battery manufacturers are expanding capacity through investments, partnerships, and joint ventures, strengthening the domestic ecosystem.
• The introduction of electric motorcycle battery swapping systems is boosting commercial demand for batteries, particularly for two-wheeler mobility solutions.

Indonesia Battery Market Segmentation

Analysis by Technology:

• Lithium-ion Battery: Dominates energy storage transformation driven by EV demand, renewable integration, and consumer electronics. Key for government EV adoption push and domestic production ambitions.

• Lead-acid Battery: Maintains significance due to affordability and widespread use in backup power, motorcycles, and UPS systems. Supported by a domestic
recycling ecosystem.

• Others: Include alternative battery technologies with smaller market shares.

Analysis by Application:

• SLI Batteries: Used in internal combustion engine vehicles for starting, lighting, and ignition. Maintains steady demand due to extensive ICE vehicle fleet.

• Industrial Batteries: Essential for telecom, UPS, energy storage systems, motive applications, and mining operations. Support industrial automation and energy reliability.

• Portable Batteries: Drive demand from consumer electronics like smartphones, laptops, and wearables.
Lithium-ion types dominate due to their efficiency and light weight.

• Automotive Batteries: Includes batteries for HEV, PHEV, and EV vehicles.

• Others: Include niche applications outside the main categories.

Indonesia Battery Market Regional Insights

• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others

Summary:

Java is the dominant region in the Indonesia battery market due to its populous and industrialized status, hosting multiple automotive and battery manufacturing facilities.

The region commands the largest market share and drives demand in SLI and portable batteries. The overall market growth across regions is supported by a CAGR of 11.72%.

Indonesia Battery Market Recent Developments & Important News

• In May 2025, Contemporary Technology Co Limited (CATL), a Chinese EV battery manufacturer, announced a USD 1 billion investment plan to build a battery cell plant in Karawang, West Java, slated to start commercial production by 2027.

• Another May 2025 announcement by CATL detailed an expansion plan for their Indonesian battery production with a USD 1 billion loan to enhance their Southeast Asian presence.

• In April 2025, South Korea's LG Group declared an additional USD 1.7 billion investment in its West Java battery factory, totaling USD 2.8 billion investment for a 10 GWh production capacity plant.

• In January 2025, Rept Battero from China announced
plans for an 8 GWh gigafactory focusing on lithium-ion cells for battery energy storage systems in Indonesia.

• Also in January 2025, Wuling Automobile Company Ltd. began assembling EV battery packs locally as part of their localization initiative.

• In August 2024, the Indonesian government opened a China-built anode plant funded by BTR New Material Group and Stellar Investment, with an initial USD 478 million investment, aiming to produce 80,000 metric tons annually.

Key Highlights of this Report

• Comprehensive quantitative analysis of the Indonesia battery market from 2020-2034.

• Detailed market forecast with segmentation by technology, application, and region.

• In-depth insights on market drivers, challenges, and opportunities.

• Porter's five forces analysis to understand competitive landscape and industry attractiveness.

• Profiles of key market players with strategic and investment focus.

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