[SMM New Energy Flash] Indonesia Prepares EV Battery Recycling Ecosystem Ahead of Waste Peak Expected Around 2040

Published: Sep 6, 2026 18:46

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Indonesia’s Ministry of Environment (KLH) is developing a nationwide management ecosystem for used electric-vehicle batteries, with battery waste expected to peak around 2040 as EV adoption expands. KLH estimates EV batteries have an average service life of around 5–8 years and aims to finalize the regulatory framework in 2026, with the broader management ecosystem targeted to be established by 2027. Under the proposed take-back system, authorized dealers and repair workshops would serve as initial collection points before used batteries are transferred to licensed collectors and recycling facilities. Batteries retaining sufficient capacity could be directed to second-life applications, while unusable materials would be recycled or ultimately disposed of. The government is also studying capacity thresholds and safety standards for battery reuse and coordinating with industry on potential incentives for consumers returning spent batteries, laying the groundwork for a more circular domestic EV battery supply chain.

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