wp_c005febad8.jpg The Secretary of the Coordinating Ministry for Economic Affairs recently announced that the Kendal Special Economic Zone (KEK Kendal) is developing into a global production center for electric vehicle battery materials. As of the second quarter of 2025, the zone has attracted IDR 90.12 trillion (approximately USD 5.8 billion) in investment, created 66,000 jobs, and hosted 128 companies. Annual anode material production capacity is 160,000 tons (the world's largest, surpassing China's 120,000 tons), supplying automakers such as Tesla in the United States; while cathode material production capacity is 120,000 tons of Lithium Iron Phosphate (LFP) material per year, the largest in Southeast Asia, covering a complete supply chain from furniture manufacturing to high-tech industries. This production center will promote the development of Indonesia's electric vehicle ecosystem and enhance Indonesia's position in the global battery industry chain, improving the trade structure through exports of high-value-added products. The zone is expected to add 800,000 tons of anode production capacity by the end of 2025, further consolidating its role as a core global supplier of battery materials.