Can Battery-Powered Electric Vehicles Deliver on Indonesia’s CO₂ Emissions Goals?

By: Arsel Arianto Pau Riwu

Rethinking the promise of EVs in Indonesia through the lens of lifecycle emissions, energy mix, and sustainable battery supply chains

 

The widespread use of high-emission vehicles on Indonesian roads presents a significant obstacle to the country’s long-term goal of achieving net-zero carbon emissions by 2060. With more than 11 million cars currently in operation, the transportation sector stands as one of the largest contributors to national carbon emissions, generating over 35 million tons of CO₂ annually. This sector alone accounts for 70-80% of urban air pollution in major cities, significantly undermines Indonesia’s climate commitments under the Paris Agreement. To overcome this challenge, a transition toward cleaner transportation alternatives is essential.

 

One widely promoted solution is the adoption of electric vehicles (EVs), which offer the potential to reduce global greenhouse gas (GHG) emissions. Their substantially lower tailpipe emissions compared to the internal combustion engine vehicles (ICEVs) provide significant benefits in cutting fossil fuel consumption and CO₂ outputs. In the context of Indonesia, the momentum for EVs adoption is growing. The government, through Ministry of Energy and Mineral Resource, has set an ambitious goal to put 2 million electric cars and 13 million electric two-wheelers on the road by 2030. This push is supported by a range of policy measures, including tax incentives and support for domestic manufacturers.

 

A critical component of EV technology is the battery, which is seeing rapidly increasing global demand - reaching over 750 GWh in 2023, a 40% rise from 2022 (IEA 2024).1 This surge underscores the importance of developing rechargeable energy storage systems with higher power density and longer lifespans, particularly lithium-ion batteries (LIBs). Recognizing this opportunity, Indonesia is leveraging its abundant reserves of key minerals such as nickel, positioning itself not only as a growing EV market but also as an emerging global hub for EV battery production (ISSD, 2025).

 

 

The environmental aspect of electric vehicles (EVs) is not as straightforward as it may appear. Much of the focus so far has been on tailpipe emissions, where EVs clearly outperform combustion engines. Studies analyzing the full life cycle of electric vehicles (EVs) - from raw material extraction, manufacturing, transportation, operation, and decommissioning - show a wide range of carbon emissions. Depending on how the batteries are made, the process can generate between 50 to 313 grams of CO₂ per kilowatt-hour of battery capacity. Still, even at the high end of that scale, EVs tend to produce fewer emissions over their lifetime than internal combustion engine (ICE) vehicles powered by petrol or diesel. ^2,3,4  

 

The sustainability of EVs depends on how they’re produced, sourced, and used throughout their lifecycle. Although EVs offer lower CO₂ emissions compared to traditional internal combustion engine vehicles, the production of electric cars - especially their batteries rely heavily on critical raw minerals like lithium, cobalt, copper, and graphite. Extracting and processing these materials often involves energy-intensive methods like sintering, grinding, and coating, that consume massive resources and leave a significant environmental footprint. For instance, extracting lithium from hard rock deposits using fossil fuel-based energy can emit up to 15 tonnes of CO₂ for every tonne of lithium produced (MIT Climate). More environmentally friendly extraction methods - such as lithium extraction from geothermal brines using inorganic sorbents, organic resins, or membrane-based techniques⁵ - offer promising alternatives to traditional mining approaches.

 

The source of electricity used to produce and charge EV batteries become a critical issue. The cleaner the power sources, the greater the emissions savings. In countries with strong renewable energy systems, EVs can dramatically cut carbon output. But in Indonesia, where coal still supplies over half of the electricity, the emissions advantage of EVs is far less pronounced. This underscores the importance of accelerating the transition to renewable energy to fully realize the environmental benefits of widespread EV adoption. Replacing fossil fuels such with renewable sources like solar, wind, hydropower, and geothermal for EVs battery productions and charging system can substantially lower emissions. Although each renewable source presents its own challenges, these options offer a more sustainable path forward than current fossil-dependent systems. 

 

Enhancing battery technology itself is equally vital. Increasing energy density and extending battery life can help reduce demand for raw materials. Lithium-ion batteries (LIBs), now the industry standard, offer energy densities above 150 Wh/kg - far surpassing older technologies like lead-acid and Ni-MH batteries, which range between 40 to 110 Wh/kg.⁶ Improvements in cathode and electrolyte design could further raise performance and reduce reliance on scarce minerals, offering both economic and environmental benefits.

 

The growing adoption of EV batteries also brings pressing challenges in managing their end-of-life phase. Developing an efficient circular supply chain is essential to ensure the sustainability of battery use and reduce environmental impact. One promising strategy is the recovery of valuable materials from mining waste, such as tailings and slag, which not only reduces industrial waste but also provides alternative sources of critical raw materials for other sectors. Although mineral recovery methods like pyrometallurgy, hydrometallurgy, and bioleaching are currently more costly than conventional mining, they hold significant potential in lowering the ecological footprint associated with raw material extraction.

 

In addition to recycling, second-life applications, such as repurposing used EV batteries for industrial energy storage, hold considerable promise. However, these initiatives face technical challenges due to performance degradation over time. Still, such approaches are crucial in reducing the environmental costs associated with new battery production. A 2022 life cycle analysis found that battery recycling alone could reduce EVs’ climate impact by nearly 8%, while cutting human toxicity by 22% and mineral resource depletion by 25%. Looking ahead, expanding circular economy practices could substantially decrease reliance on virgin materials, with projections indicating that recycling could meet up to 64% of raw material demand between 2040 and 2050. Reflecting this momentum, the global EV battery recycling market is projected to grow rapidly, reaching USD 15.8 billion by 2030 with a compound annual growth rate (CAGR) of 32.1%.⁸

References

 

(1)       Global EV Outlook 2024. 2024.

(2)       Alanazi, F. Electric Vehicles: Benefits, Challenges, and Potential Solutions for Widespread Adaptation. Applied Sciences 2023, 13 (10), 6016. https://doi.org/10.3390/app13106016.

(3)       Farzaneh, F.; Jung, S. Lifecycle Carbon Footprint Comparison between Internal Combustion Engine versus Electric Transit Vehicle: A Case Study in the U.S. Journal of Cleaner Production 2023, 390, 136111. https://doi.org/10.1016/j.jclepro.2023.136111.

(4)       Temporelli, A.; Carvalho, M. L.; Girardi, P. Life Cycle Assessment of Electric Vehicle Batteries: An Overview of Recent Literature. Energies 2020, 13 (11), 2864. https://doi.org/10.3390/en13112864.

(5)       Luong, J. H. T.; Tran, C.; Ton-That, D. A Paradox over Electric Vehicles, Mining of Lithium for Car Batteries. Energies 2022, 15 (21), 7997. https://doi.org/10.3390/en15217997.

(6)       Khan, F. M. N. U.; Rasul, M. G.; Sayem, A. S. M.; Mandal, N. Maximizing Energy Density of Lithium-Ion Batteries for Electric Vehicles: A Critical Review. Energy Reports 2023, 9, 11–21. https://doi.org/10.1016/j.egyr.2023.08.069.

(7)       Koroma, M. S.; Costa, D.; Philippot, M.; Cardellini, G.; Hosen, M. S.; Coosemans, T.; Messagie, M. Life Cycle Assessment of Battery Electric Vehicles: Implications of Future Electricity Mix and Different Battery End-of-Life Management. Science of The Total Environment 2022, 831, 154859. https://doi.org/10.1016/j.scitotenv.2022.154859.

(8)       Antony Jose, S.; Dworkin, L.; Montano, S.; Noack, W. C.; Rusche, N.; Williams, D.; Menezes, P. L. Pathways to Circular Economy for Electric Vehicle Batteries. Recycling 2024, 9 (5), 76. https://doi.org/10.3390/recycling9050076.

(9) https://www.iisd.org/articles/deep-dive/indonesian-electric-vehicle-boom-temporary-trend-or-long-term-vision