How is Southeast Asia’s charge to EVs going?

Southeast Asia is a hot spot for electric vehicles (EVs), which can help reduce transport-related pollution and boost economic growth.

However, EVs are still not very popular in the region. Only 2.1 percent of the vehicles sold in Southeast Asia in 2022 were electric, compared to 2.3 percent in India and 29 percent in China.

One of the main challenges is the high cost of EVs, which are mostly imported. Another is the lack of charging stations.

To overcome these barriers, some countries are offering incentives such as subsidies and tax breaks to make EVs more affordable for consumers. They are also trying to develop their own EV industry, especially the battery sector.

The battery is the most important part of an EV, and it requires minerals such as nickel, which are scarce and expensive.

Indonesia has an advantage in this area, because it has a lot of nickel reserves and it has banned exporting them to encourage local battery production (see graphic).

But other countries are not far behind. Malaysia has found some critical minerals for batteries, and Vietnam has partnered with an Australian company to mine nickel and start producing batteries by 2025.

There are also new types of batteries that use less nickel and more common and cheaper minerals.

These innovations could make EVs more accessible and sustainable in Southeast Asia.

Electric vehicle race

Indonesia, Malaysia, Thailand and Vietnam are leading the charge on EV development, but critical parts of the production pipeline are still underdeveloped.

Southeast Asia is eager to embrace electric vehicles (EVs), which can cut down transport-related pollution and spur economic growth.

But EVs are still a niche market in the region. In 2022, only 2.1 percent of the vehicles sold in Southeast Asia were electric, compared to 2.3 percent in India and 29 percent in China.

The main hurdles are the high price of EVs, which are mostly imported, and the insufficient charging infrastructure.

Some countries are tackling these challenges by offering incentives such as subsidies and tax breaks to make EVs more attractive for consumers. They are also trying to build their own EV industry, especially the battery sector.

The battery is the most crucial part of an EV, and it requires minerals such as nickel, which are rare and costly.

Indonesia has a lead in this area, because it has abundant nickel reserves and it has prohibited exporting them to promote local battery production.

But other countries are not far behind. Malaysia has discovered some key minerals for batteries, and Vietnam has teamed up with an Australian company to mine nickel and start making batteries by 2025.

There are also new kinds of batteries that use less nickel and more common and cheaper minerals.

These innovations could make EVs more affordable and sustainable in Southeast Asia.

This content is originally published under the Creative Commons license by 360info™. The Ground Report editorial team has made some changes to the original version.

Keep Reading

• 3.7 litres of water used to make one cigarette
• What makes Oman’s Yiti a sustainable city?
• Clean energy manufacturing market to reach $790B by 2030: IEA

Follow Ground Report for Climate Change and Under-Reported issues in India. Connect with us on Facebook, Twitter, Koo App, Instagram, Whatsapp and YouTube. Write us on [email protected].