Minister: EV Battery Raw Material Factory Can Boost Morowali's Economy

Sulawesi, VIVA – A factory for electric vehicle battery raw materials has begun construction in Buleleng Village, Bungku Pesisir District, Morowali Regency, Central Sulawesi.

The government held the groundbreaking ceremony for the plant during the HPAL Neo Energy event, which took place at the Neo Energy Morowali Industrial Estate (NEMIE) on Saturday (Sept 14).

The event was attended by Coordinating Minister for Economic Affairs Airlangga Hartarto and Army Chief of Staff General Maruli Simanjuntak.

The mega project is scheduled to begin operations in early 2026, with plans to employ 3,000 workers.

In his speech, Minister Hartarto said that Indonesia’s nickel supply supports the global battery industry, noting that the country is the world's top nickel producer.

"It is hoped that this (factory) will further boost the economy," the minister said.

He also praised Neo Energy for its commitment to being an environmentally friendly industry.

Meanwhile, Neo Energy President Commissioner Joseph Hong stated that all operations at the company’s site will use 100 percent green energy, including hydroelectric and solar power.

He further emphasized that the presence of his industry aims to strengthen Indonesia’s position in the global market as an environmentally friendly nickel producer.

"Our products not only support the global electric vehicle battery industry but are also expected to enhance Indonesia’s reputation in developing sustainable technology and mineral processing," Hong explained.

Additionally, Central Sulawesi Governor Rusdy Mastura expressed his happiness and pride with the presence of this environmentally friendly industry in his region.

He also mentioned that the region remains open to welcoming any industry, as long as they pay attention to improving the welfare and skills of the local community.