Indonesia Battery Recycling Market Outlook to 2030

Indonesia Battery Recycling Market Overview

• The Indonesia battery recycling market has experienced notable growth, this is reflected by the global recycling battery market which was valued at 26.4 billion in 2023, driven by the rising demand for electric vehicles (EVs) and consumer electronics, which contribute to the increased production of batteries requiring recycling.
• Major players in the Indonesian battery recycling market include PT. International Nickel Indonesia, PT. Trinitan Metals and Minerals, PT. Rubicon Resources, PT. Indoenergy Solutions, and PT. Enviro Metal Indonesia. These companies dominate due to their extensive network, technological advancements, and strong market presence.
• PT Vale Indonesia is one of the leading nickel producers in Indonesia, which is currently the world's largest producer of nickel. Thier focus of Indonesia's nickel strategy is shifting towards supporting the electric vehicle (EV) supply chain, which includes battery production. This transition indicates that companies like PT Vale are likely to engage more with battery manufacturers as demand for nickel in battery production grows.

Indonesia Battery Recycling Market Analysis

• The primary growth drivers for the Indonesia battery recycling market include the rising adoption of electric vehicles (EVs) and consumer electronics. In 2023, the EV market in Indonesia saw an increase, contributing significantly to the demand for battery recycling. Furthermore, government regulations mandating proper battery disposal and recycling have played a crucial role
• The efficient battery recycling processes have minimized hazardous waste, contributing to environmental conservation. In 2020, hazardous materials in Indonesia reached 8,486.79 tonnes. Used batteries were recycled, preventing tons of hazardous materials from entering landfills. This positive impact is expected to increase as recycling practices become more widespread.
• Jakarta, the capital city of Indonesia, dominates the battery recycling market due to its large population and high concentration of industrial activities. The city's well-established infrastructure and access to advanced recycling technologies have contributed to its leading position.

Indonesia Battery Recycling Market Segmentation

The Indonesia Battery Recycling Market be segmented based on various factors. Here are three key segmentation types with their sub-segments and estimated market share ranges:

By Product Type: The Indonesia Battery Recycling Market is segmented by Product Type into Lead-Acid Batteries, Lithium-Ion Batteries, Nickel-Cadmium and Others. In 2023, lead-acid batteries dominate the market due to their extensive use in automotive and industrial sectors. These batteries have an established recycling process, and their components, such as lead, can be recycled multiple times, making them highly economical and sustainable.

By Application: The Indonesia Battery Recycling Market is segmented by Application into Automotive, Industrial, Consumer Electronics and Others. In 2023, the automotive segment was dominating due to the significant number of vehicles in Indonesia. Batteries from vehicles need regular replacement, creating a steady stream of recyclable material. Industrial applications also contribute significantly due to the use of large batteries in various heavy-duty applications.

By Region: The Indonesia Battery Recycling Market is segmented by Region into North, South, East and West. The Northern region of Indonesia dominated the market in 2023. The presence of major industrial hubs and advanced recycling facilities in this region drives its market dominance. The government's focus on industrial development in the North has further boosted the Indonesia Battery Recycling market.

Indonesia Battery Recycling Market Competitive Landscape

• PT Pelita Mekar Semesta: PMS has been selected by Asia Business Outlook as one of the "Top 10 Plastic & Metal Recycling Companies from Asia - 2023,". The company is professional – running with high standards along with ISO 9001:2015, making it a leading battery component recycling company.
• Antam's Collaboration with Hong Kong CBL Limited: On December 28, 2023, ANTAM signed a collaboration agreement with Hong Kong CBL Limited to enhance the lithium battery ecosystem in Indonesia. This partnership is notable as it encompasses the entire supply chain, from nickel mining to the production of battery cells and packs, including recycling processes.

Indonesia Battery Recycling Industry Analysis

Indonesia Battery Recycling Market Growth Drivers

• Increased Electric Vehicle (EV) Adoption: The growing adoption of electric vehicles in Indonesia is significantly driving the battery recycling market. In 2023, Indonesia registered more than 17000 new electric vehicles. This rise in EV adoption is creating a substantial demand for battery recycling services to manage end-of-life batteries efficiently and durably.
• Technological Innovation by LG and Hyundai: Indonesia is aiming to leverage its abundant nickel resources to become a hub for EV battery production, attracting investments from companies like LG, Hyundai, and CATL. The government has set targets for EV adoption, aiming for four-wheeled EVs and two-wheeled EVs by 2024, these companies and their expertise can play a huge role in this.
• Rising Awareness of Environmental Sustainability: Indonesia is actively working to develop a comprehensive electric vehicle (EV) supply chain, which includes battery production and recycling. The government has set ambitious targets for EV battery production. This effort is part of a broader strategy to reduce greenhouse gas emissions and promote the domestic EV market.

Indonesia Battery Recycling Market Challenges

• High Cost of Recycling Technologies: Capacity utilization of the hydrometallurgical power plant or pyrometallurgical plant starts at 50 percent utilisation and takes about 3-5 years to reach 70-80- 90 per cent. The annual cost involved in the operation of the plant (OPEX) is estimated at around USD 5.25 million. This makes the battery recycling components high capital intensive, hence difficult for new player entry in the market.
• Limited Consumer Participation: Consumer participation in battery recycling programs remains limited. Despite various awareness campaigns, only few of the Indonesian households actively participated in battery recycling in 2024. This low engagement rate indicates a need for more effective education and incentivization programs.
• Lack of Standardized Collection Systems: Traceability and collection of end-of-life batteries is a challenge globally, as there needs to be a system to track and collect used batteries. Indonesia is looking to develop its domestic battery manufacturing and recycling capabilities.

Indonesia Battery Recycling Market Government Initiatives

• National Battery Recycling Program: The current regulations of waste management, such as Governmental Regulation No. 27 of 2020, assign the responsibility of managing electronic waste to regional governments, producers, and waste processors. This program aims to establish efficient collection and recycling infrastructure across the country, enhancing the capacity to handle and recycle used batteries.
• Financial Incentives for Recycling Companies: The government introduced financial incentives for companies engaged in battery recycling in 2024. These incentives include tax breaks and subsidies, amounting to USD 20 million, to support the establishment and operation of recycling facilities. The aim is to encourage more companies to enter the market and increase the overall recycling capacity.

Indonesia Battery Recycling Market Future Outlook

By 2028, the Indonesian battery recycling market is expected to have significant growth driven by increased electric vehicle adoption and stringent environmental regulations, indicating strong market potential and growth.

Future Market Trend

• Increased use of Automated Recycling Technologies: Over the next five years, the use of automated recycling technologies is expected to rise significantly in Indonesia's battery recycling market, broken down by different recycling processes like hydrometallurgical, pyrometallurgical, and physical/mechanical. This trend aims to reduce manual labor and improve the precision of recycling processes, thereby increasing the recovery rates of valuable materials.
• Expansion of Battery Recycling Facilities: The number of battery recycling facilities in Indonesia is anticipated to grow substantially by 2028. It is estimated that at least 50 new recycling plants will be established by 2028, driven by government incentives and increased private investment. This expansion will bolster overall recycling capacity and meet the rising demand for battery recycling services.