The global automotive industry is undergoing a significant paradigm shift toward electrification. For design engineers and product managers, the primary challenge is not merely creating efficient electric vehicles (EVs), but managing the entire product lifecycle sustainably.

In Indonesia, optimizing the electric vehicle lifecycle is crucial to supporting the Net Zero Emission (NZE) target by 2060. This approach encompasses the material extraction phase, manufacturing, usage, and responsible end-of-life management.

The assembly process of electric vehicle battery components in a modern factory environment that prioritizes efficiency and precision. — Image created by AI

The importance of ecological design in product development

The first step in lifecycle optimization is the application of eco-design principles. Engineers must consider battery modularity from the early design stage to facilitate future repairs and recycling. This strategy aligns closely with the government’s efforts to strengthen the electric vehicle ecosystem in Indonesia [2].

By designing modular battery packs, manufacturers can extend the vehicle’s lifespan. Furthermore, selecting more environmentally friendly materials during the design phase will reduce the overall carbon footprint. This also helps companies meet increasingly stringent Domestic Component Level (TKDN) requirements.

Sustainable manufacturing and government policy

The Indonesian government has established clear regulations through Presidential Regulation (Perpres) No. 79 of 2023 to accelerate the adoption of electric vehicles [1]. This policy provides flexibility for manufacturers to adjust their TKDN increase schedules. As a product manager, understanding these regulations is key to developing a competitive local manufacturing strategy.

The production process for battery cells in Indonesia is now beginning to integrate with nickel downstreaming. High-Pressure Acid Leach (HPAL) technology is being used to process nickel into more sustainable battery precursors [3]. This vertical integration ensures that the supply chain’s carbon footprint can be reduced from the upstream level.

Optimizing the usage phase and infrastructure

During the usage phase, the energy efficiency of an electric vehicle depends heavily on the charging ecosystem. The development of Public Electric Vehicle Charging Stations (SPKLU) and Public Electric Vehicle Battery Exchange Stations (SPBKLU) has become the backbone of operations. You can learn more about electric vehicles and government incentive policies in Indonesia to understand the operational support available to users.

EV operations will become increasingly environmentally friendly as the national energy mix transitions toward New and Renewable Energy (EBT). Product managers must ensure that the vehicle’s energy management software can communicate intelligently with the charging infrastructure. This will optimize charging times and extend long-term battery health.

End-of-life strategies and the circular economy

The final stage of the EV lifecycle is the management of batteries that have reached a decline in capacity. Batteries that are no longer optimal for vehicles often still retain 70-80% capacity, which is sufficient for other applications. This practice is known as “second-life battery” usage [4].

These batteries can be repurposed into energy storage systems (ESS) to support solar power plants. Once they reach the end of their total service life, batteries must be recycled through hydrometallurgical or pyrometallurgical processes. This step allows for the recovery of valuable metals such as nickel, cobalt, and lithium to be reused in the production of new batteries [5].

Implementing this circular economy not only reduces Hazardous and Toxic Waste (B3), but also secures the supply chain for critical materials. For companies, this is a major opportunity to create added value from products previously considered waste.

Challenges and opportunities for product engineers

The main challenge for design engineers today is balancing production costs with sustainability. However, as economies of scale increase in Indonesia, battery technology costs are predicted to continue declining. The use of recycled materials will also become an industry standard in the near future.

Product managers need to monitor trends in the complete guide to choosing a personal electric vehicle in Indonesia to understand evolving consumer needs. Focusing on ease of service and the availability of local spare parts will be a competitive advantage in the highly dynamic Indonesian market.

Overall, EV lifecycle optimization is a long journey involving cross-sector collaboration. By adhering to Presidential Regulation 79/2023 and implementing design innovations, Indonesia can lead the energy transition in the Southeast Asian region.

More Information

  1. Presidential Regulation 79 of 2023: Government regulation that revises the rules for accelerating the battery-based electric motor vehicle program, providing incentives and adjustments to the TKDN schedule to attract manufacturing investment in Indonesia [1].
  2. TKDN: The percentage of the value of domestic components contained in a product, which is a mandatory requirement for electric vehicle manufacturers to receive government incentives [2].
  3. Nickel Downstreaming: The process of domestic nickel ore processing using HPAL technology to produce high-value-added battery raw materials, such as nickel sulfate and precursors [3].
  4. Second-life battery: The utilization of electric vehicle batteries whose capacity has declined (below 80%) for other applications, such as industrial or household-scale energy storage systems [4].
  5. Hydrometallurgical recycling: A battery material recovery method using liquid chemical solvents to extract valuable metals like lithium, cobalt, and nickel with high efficiency from used batteries [5].