Battery Metals

Sales of electric vehicles in Indonesia grew by an astonishing 680% in May 2023 compared to the year before, following the recent implementation of government subsidies.

Since March this year, different ministries have been issuing regulations on Rp7 trillion (about US$456 million) worth of subsidies for people buying or converting electric motorbikes in 2023 and 2024, as well as reduced taxes for electric car purchases.

While those booming sales seem like good news, I believe the subsidy program is a temporary solution to push for widespread electric vehicle adoption.

In the long run, I—as a researcher in energy system analysis with more than ten years of experience in the energy sector—argue Indonesia must set a long-term plan to electrify its transport sector with much higher renewable energy.

My research concludes that Indonesia will benefit in at least two ways from setting a long-term plan. First, the country can significantly decrease energy subsidies by reducing fossil fuel consumption in both the transport and electricity sectors. Second, it will reduce carbon dioxide emissions from both sectors.

We need more renewables to power electric vehicles

A research review showed subsidy programs are an effective tool to boost electric vehicle ownership in select countries, such as the U.S. and Norway.

That 2017 review suggested one effective approach was to provide upfront grants or exemptions from value-added tax or purchase taxes. These incentives can encourage the ownership of emerging vehicles and promote their adoption in the market.

Subsidizing private electric vehicles is considered “low-hanging fruit” (an easily achieved task) for the Indonesian government to cut carbon dioxide emissions. That’s because private road vehicles consumed more than 70% of the total oil consumption in Indonesia’s transport sector.

In addition, electric vehicles are generally 2-3 times more energy-efficient than conventional vehicles. Electric vehicles have more efficient powertrains, using electric motors that convert a higher percentage of battery energy into useful power for driving. In contrast, conventional vehicles experience energy losses through heat and friction during combustion.

The problem is that Indonesia’s electricity sector still heavily relies on coal, which accounted for 62% of total electricity generation in 2022, meaning that electric vehicles on Indonesia’s streets are still dominantly powered by fossil fuels.

That’s why it is important for the Indonesian government to ensure subsidies for electric vehicles align with wider plans for Indonesia’s energy transition in the transport sector.

This includes plans to electrify all transport means and to use alternative fuels, such as hydrogen and electro fuels.

To achieve wider plans in the transport sector, Indonesia needs to do more to boost renewable energy in its electricity sector.

At the moment, the government is still struggling to meet the country’s target of 23% renewable energy share by 2025.

Subsidy debates

Indonesia’s subsidies for electric vehicles has sparked debate. One of the main arguments against such subsidies is its Rp7 trillion cost to the Indonesian government’s tight budget.

Any new subsidy is always an additional cost for any government. In addition to that, the subsidy only targets high-income groups as they are the ones who can afford buying this kind of vehicle.

Such subsidies can also disrupt the market by artificially increasing demand for electric vehicles.

It is important to note that there was already a high demand for electric vehicles in Indonesia even before subsidies were distributed, as indicated by the long waiting list of customers eager to purchase them.

3 pillars of a long-term plan

We should not view subsidies as an effective and sustainable solution in the long run for the transport sector’s energy transition.

Instead, Indonesia should create its long-term plan based on three pillars.

(1) Avoid: Indonesia should make its transportation sector more efficient by making residential, work and leisure areas in every city closer to each other. Therefore, the need for motorized travel and the trip length can be reduced.

(2) Shift: Indonesia must encourage the public to use more eco-friendly transportation, by promoting public transportation or active transport such as cycling and walking.

Several studies across the globe, such as in Poland and China, show bus electrification can greatly reduce carbon dioxide emissions in big cities. Furthermore, electric buses will be more cost-effective than conventional buses in the medium and long-term.

(3) Improve: Indonesia should refine its public transportation to be more environmentally friendly and attractive. Transport electrification is the key in this pillar.

Using renewable energy-based electricity to power the transport sector will play a crucial role in a fully decarbonised Indonesian energy system. This will also be for the greater good of the Indonesian people and the environment.

Providing subsidies for electric vehicles should be only the first small step in a long-term plan to electrify Indonesia’s transport—driven increasingly by renewables, not coal-fired electricity.

The world’s largest battery maker has launched what it claims is the first ever “superfast charging” battery capable of delivering 400 kilometres (249 miles) of range from just a 10 minute charge.

China’s Contemporary Amperex Technology Limited (CATL) said its new lithium-ion battery would open up a new era for electric cars and eliminate range anxiety for owners.

On a full charge, the battery holds enough charge to travel over 700 km without needing to recharge – roughly 60 per cent further than the average electric vehicle in 2023.

CATL said the increase in battery capacity and charge time was achieved through a “brand-new superconducting electrolyte formula” that results in improved conductivity.

“The future of the EV battery technology must remain steadfastly anchored at the global technology frontier, as well as the economic benefits,” said Dr Wu Kai, chief scientist at CATL.

“As EV consumers shift from pioneering users to ordinary users, we should make advanced technology accessible for all and enable everyone to savour the fruits of innovation.”

CATL, which manufactured more lithium-ion batteries than any of its competitors in 2022, plans to begin mass production of its next-generation battery later this year.

The company did not reveal which automakers would be the first to receive the batteries, though its customers include BMW, Daimler AG, Honda, Tesla, Toyota, Volkswagen and Volvo.

Electric car sales have experienced record-breaking growth in recent years, with more than 10 million sold last year, however they still account for less than a fifth of all car sales.

Hundreds more Vermonters will be able to add home battery backup power after state regulators agreed to lift a cap on the program. And the state’s largest utility is excited about the news.

The Public Utility Commission released a ruling Thursday that the cap on the number of home batteries has been lifted.

“It’s just really exciting news because we know that these programs deliver really great results for our customers,” said Kristin Kelly, the director of communications for Green Mountain Power.

For several years, Green Mountain Power has been deploying Tesla Powerwalls so customers can store energy at home to use during power outages, which have become more common in recent years.

Depending on type, usage and solar panel presence, batteries can run for days and last for over a decade.

If customers opt to share their stored energy during peak energy periods like heat waves, they can receive a monetary incentive.

GMP hopes the expansion will breed greater resilience in the face of climate change.

“Now, more than ever, it’s really important that customers who want access to cost-effective home battery storage to be able to access it, and now they’re going to have it,” Kelly said.

Kevin Thorley is one of 2,900 customers who currently have batteries in their homes.

“It’s seamless,” Thorley said. “It kicks on immediately, the lights barely even flicker.”

Hundreds of other Vermonters have been trying to jump on the bandwagon to no avail. The programs were capped at 500 customers per year since 2020. The waitlist for Powerwall batteries– which grew significantly following recent flooding– currently sits at 1,200 customers.

With the cap lifted, more people will be able to source energy at home.

The Public Utility Commission placed the cap to ensure the programs ran smoothly and other GMP customers wouldn’t be burdened by the cost of the batteries. But GMP says the financial impact has been positive for all customers. By drawing from local batteries instead of the open market during peak energy demand, GMP customers save around $3 million a year.

Thorley says he likes being able to contribute to the grid and the peace of mind his Powerwall brings in conjunction with his solar panels.

“The battery gets charged up before anything else, so if it has drawn down, the solar recharges that first thing in the morning and it’s just available and there if we need it,” Thorley said.

GMP says customers on the waitlist should contact their local installers to get the ball rolling and interested customers can visit their website to learn more.

Battery performance and safety have long stood in the way of electrifying aviation but that could soon change.

New battery technology being developed by NASA could help to revolutionise air travel.

Aviation makes up around 2.4 per cent of global CO2 emissions. For a long time, scientists have been searching for a way to electrify air travel and eliminate these emissions.

But current battery technology only works for some lighter aircraft like drones. It doesn’t supply enough power or range for passenger aircraft meaning they are rare and not widely used.

Lithium-ion batteries, which are used for electric cars and personal devices, don’t meet the safety standards needed to be used in aviation either. Their flammability is the reason you can’t put items like laptops or phones in your checked luggage when you fly.

So, to get electric-powered flights off the ground, a different solution is needed. This is where NASA’s research comes in.

What is a solid-state battery and how could it power aircraft?

The US space agency has been developing technology that doesn’t use liquid electrolyte chemicals – the main safety concern of many batteries. These substances can undergo a chain reaction that causes them to heat up, react more due to the heat and eventually catch fire.

NASA’s Solid-state Architecture Batteries for Enhanced Rechargeability and Safety (SABERS) project has been working on an alternative – solid-state batteries. Not only do they have the power and efficiency needed for aircraft, they retain a solid structure even when damaged meaning they don’t catch fire.

A prototype sulphur selenium battery developed by the project produces 500 watt-hours of energy per kilogram of battery. That is double the energy density of a standard lithium-ion battery.

Aircraft also require their power source to discharge energy quickly. NASA scientists use the analogy of a battery being like a bucket. Its energy or capacity is how much the bucket can hold while its power is how fast it can be emptied. Electric planes would require it to discharge energy or empty this bucket at an extraordinarily fast rate.

So far they have made leaps in increasing this rate of discharge by a factor of 10 then a further 5 as prototypes have improved.

Researchers have also found that their solid-state batteries could withstand temperatures twice as hot as lithium-ion alternatives. A lightweight design helps to pack more power into less space.

“Not only does this design eliminate 30 to 40 per cent of the batteries weight, it also allows us to double or even triple the energy it can store, far exceeding the capabilities of lithium-ion batteries that are considered to be the state of the art,” Rocco Viggiano, principal investigator for SABERS, said in a press release last year.

Could battery-powered planes soon become a reality?

Solid-state batteries are still being tested and, as a result, creating them is incredibly expensive. They would also need to be tested extensively before being cleared for use on commercial flights.

This means it could be a long time before we see the technology actually being used. But NASA’s recent breakthroughs in increasing the discharge rate of solid-state batteries have removed some of the roadblocks previously standing in the way of electric planes.

Chinese battery giant CATL on Wednesday launched a fast charging lithium iron phosphate or LFP battery capable of running 400 km (248 miles) on a 10-minute charge.

Mass production of the new battery called Shenxing is expected by the end of the year while electric vehicles equipped with Shenxing batteries will hit the market in the first quarter of 2024，Gao Han, chief technology officer of CATL’s E-Car Business, told an online briefing.

“We hope through continuous efforts to improve technology and reduce costs, Shenxing will become a standard product available for every electric vehicle,” Gao said.

CATL has scrambled to maintain its industry leadership while facing challenges of weakening demand and pressure to cut costs from EV makers amid a price war and a slowdown in auto sales this year.

CATL, which counts Tesla as its biggest client, has been losing market share to BYD, a major automaker that powers all its EVs with its own batteries.

Automakers such as Chongqing Changan Automobile and Guangzhou Automobile Group also sourced more batteries from smaller suppliers to reduce costs.