Building a Competitive Advantage for Indonesia in the Development of the Regional EV Battery Chain

Tomasz Konewka, Joanna Bednarz and Tomasz Czuba
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Tomasz Konewka: Faculty of Economics, University of Gdansk, Armii Krajowej 119/121, 81-824 Sopot, Poland
Joanna Bednarz: Department of International Business, Faculty of Economics, University of Gdansk, Armii Krajowej 119/121, 81-824 Sopot, Poland
Tomasz Czuba: Department of International Business, Faculty of Economics, University of Gdansk, Armii Krajowej 119/121, 81-824 Sopot, Poland

Energies, 2021, vol. 14, issue 21, 1-13

Abstract: In the process of the electrification of the vehicle industry, an important issue is to adapt production to new technological solutions and to achieve a break-even point in the production costs of an electric vehicle in the short term compared to its traditional counterparts. By the end of 2020, 10 million electric cars were sold worldwide. In today’s globalized and crisis market realities, it is very difficult for state authorities to build a competitive advantage. Based on the concept of M.E. Porter, generating competitiveness does not take place at the macroeconomic, but at the mezzoeconomic level. The key purposes of this review paper are threefold: firstly, to identify the infrastructure for the production of electric cars (market size, resources) in some major Asian countries, including Indonesia; secondly, to identify the importance of FDI for Indonesia and the essence of their relations with China, and thirdly, to investigate whether Indonesia is able to build a competitive advantage in the form of a regional EV battery chain hub. The Indonesian government should ensure a more sizeable investment in lithium-ion battery production in order to complete a whole downstream supply chain, which includes the synthesis of the remaining high-quality battery materials.

Keywords: EV battery; nickel 1; competitiveness; FDI; Indonesia (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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