[SMM Aluminum Flash] Indonesia, Russia Advance Fertilizer and Aluminum Processing Cooperation

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.

China’s BYD officially inaugurated its new energy vehicle manufacturing facility in Subang, West Java, on September 3, marking the automaker’s shift from relying on fully imported vehicles to local production in Indonesia. The 126-hectare plant has annual production capacity of 150,000 vehicles and integrates the main manufacturing processes of stamping, welding, painting and assembly. The facility currently employs more than 5,000 people, with local employment potentially exceeding 20,000 when operating at full capacity. BYD said cumulative vehicle sales in Indonesia are approaching 100,000 units, while the company targets sales of 200,000 units next year.