This is an extract from a recent report “Reuse of Electric Vehicle Batteries in ASEAN” prepared by ERIA. This provides an overview of electric vehicle (EV) policies in selected Association of Southeast Asian Nations (ASEAN) countries. It investigates the EV policies and targets, the current status of EV introduction, EV reuse plans, and battery reuse policies. 

Brunei Darussalam

EV Policy and Target: The Government of Brunei Darussalam believes that EVs are a powerful means of transportation, as they focus on short-range transportation that can be recharged relatively inexpensively with electricity. Furthermore, according to the Brunei Darussalam National Climate Change Policy, it plans to set EVs at 65% of vehicle sales by the year 2035. To achieve that goal, the government will make policy decisions by controlling EV prices and expanding charging stations, including through excise tax incentives and the like, as well as paying attention to electricity and vehicle licence fees. Still further, the Electric Vehicle Joint Task Force, composed of relevant stakeholders, was established in 2019. It is expected to ensure the implementation of EV promotion policies. In addition, pilot projects such as the development of charging stations are currently being implemented through government initiatives.

Variable Renewable Energy (VRE) Introduction Plan: According to the National Climate Change Policy, renewable energy will account for more than 30% of the capacity of power generation facilities by 2035, especially through the expansion of solar power. Currently, 1.2 MW solar power plants are operating in Seria, Belait District domestically, accounting for 0.14% of the country’s total power generation.

Indonesia

EV Policy and Target: To reduce the expected potential increase in oil imports and to nurture the domestic automobile manufacturing industry, Indonesia has set a target to abandon sales of internal combustion engine (ICE) vehicles by 2040. Indonesia also intends for alternative vehicles to account for 20% of total vehicle production by 2025. 

Indonesia has formulated Presidential Regulation, No. 55 Year 2019 Regarding Acceleration of Battery-Based Electric Vehicle Program for Road Transportation. Aside from promoting EVs for energy security enhancement and environmental purposes, Indonesia’s EV policy is to focus on domestic manufacturing. Taking advantage of the essential metals availability domestically, Indonesia aims to become the hub of EVs manufacturing. 

For the purpose of providing incentives to increase the sales of domestically produced battery EVs, Indonesia plans to increase the luxury tax on plug-in hybrid and hybrids respectively to 8% and 10%–14% according to the draft regulation of the Ministry of Finance.  Besides, the country has formulated the Ministerial of EMR Regulation No. 13 Year 2020 Regarding Provision of Charging Infrastructure for Battery-based Electric Vehicles. It aims to increase the number of charging stations from 180 in 2020 to 7,146 in 2030.

Current Status of EV Introduction: Indonesia’s hybrid electric vehicle/plug-in hybrid electric vehicle HEV/PHEV sales in 2019 was 837, and battery electric vehicles (BEVs) accounted for 20 units in the same year. This represents 0.2% of total sales of vehicles. 

Battery Reuse Plan: Article 32 of PR 55/2019 stipulates Indonesia’s general framework of EV batteries reuse and recycling as follows. 

−Handling of battery waste from battery-based electric vehicles (BEV) must be carried out by recycling and/or waste management. 

−Handling of battery waste is carried out by institutions, the BEV industry, and/or the domestic BEV component industry that has a battery waste management licence from a BEV that owns licences in accordance with regulations in the field of waste management.

VRE Introduction Plan: The General Plan for National Electricity (called RUKN) is prepared as the national plan for the electricity sector in Indonesia. The latest RUKN is prepared for the time period between 2019 and 2038. 

Malaysia

EV Policy and Target: Malaysia’s Ministry of Environment and Water has outlined the electrification of the transport system under the ‘Low Carbon Mobility Blueprint 2021-2030’. The blueprint entails Malaysia’s overall strategies related to the transport sector, including fuel economy improvement, EV and low emissions vehicle adoption, greenhouse gas emissions reduction, and modal shifts towards an energy efficient system. In the blueprint, Malaysia aims to increase the share of EV sales in passenger vehicles. The targets are 9% in 2025 and 15% in 2030

To facilitate the sales increases, Malaysia plans to expand the number of charging systems to install 7,700 units in 2025. The public sector will lead the EV deployment as part of public procurement. In the time period between 2021–2022, the share of EVs in the public procurement is targeted to account for 10%, and it is targeted to increase to 20% (2023–2025), and 50% (2026–2030). From 2025 to 2030, Malaysia’s EV public procurement will be limited to domestic production only. 

Battery Reuse Plan: The policy for reuse of EV batteries is under formulation.

VRE Introduction Plan: Currently, Malaysia’s renewable share in electricity generation accounts for 2%, while the government plans to expand the share to 20% in 2025. Photovoltaic (PV) systems are expected to play an important role in meeting the target. Net metering is implemented in Malaysia, with rooftop PV systems playing an important role.

The Philippines 

EV Policy and Target: According to the government’s Clean Energy Scenario in the Philippine Energy Plan, the adoption of EVs is expected to reach 10% by 2040. To achieve this goal, the government has introduced income tax exemptions for pioneering companies such as EVs, alternative fuel vehicles, charging stations, and the like from 6 years to up to 8 years, as well as exemptions for imports of equipment, spare parts, and consumables, under Executive Order No. 226. 

Furthermore, Executive Order No. 488 exempts from duty the import tariff rates of components, parts, and accessories required for the assembly of hybrid vehicles, EVs, flexible fuel vehicles, and compressed natural gas vehicles. Still further, EVs’ automotive tax exemption, the introduction of a 50% exemption for hybrid vehicles, and the expansion of charging stands will also be addressed. 

Current Status of EV Introduction: As of 2019, the total number of e-trikes, e-quads, e-jeeps, and other EVs (e-motorcycles, e-trucks, and e-buses) available in the Philippines was 5002 units. This brings the total number of EVs available to 8,682 units for the years 2020–2021. 

EV Criteria: The Bureau of Philippine Standards of the Department of Trade and Industry has formulated the following as standards related to EVs. 

-EV safety specifications 

-Fuel cells and road vehicles 

-Hybrid vehicles 

-Charging systems 

-Lithium-ion battery packs, plugs, socket outlets, vehicle connectors, vehicle inlets 

-Vehicle grid communication interface

Singapore

EV Policy and Target: In February 2020, the Singapore government announced plans to phase out internal combustion engines (ICE) vehicles by 2040, to switch to cleaner fuel vehicles, mainly EVs, and to expand public charging spots from the current 1,600 to 28,000 by 2030. In order to tackle these challenges, there are several incentives and measures. Firstly, the Vehicular Emissions Scheme metes out tax rebates and surcharges based on a vehicle’s emissions levels. The scheme takes into account the emissions of five pollutants of carbon dioxide, hydrocarbons, carbon monoxide, nitrogen oxides, and particulate matter and consists of five bands – A1, A2, B, C1, and C2. Depending on how many pollutant(s) the vehicle emits, the worst performing one will determine which band the vehicle falls under. 

Secondly, an early adoption incentive scheme, which offers a 45% rebate on the vehicle’s Additional Registration Fee, capped at SGD20,000 per vehicle. Thirdly, the road tax for EVs is less punitive. In February 2021, the government announced the Green Plan 2030, and showed more ambitious plans to require all newly-registered cars to be cleaner-energy models from 2030, and set aside SGD30 million over the next 5 years for related initiatives. In addition, affordability of EVs by narrowing the cost differential between EVs and ICE vehicles will be increased.

Current Status of EV: According to the statistics from the Land Transport Agency, as of the end of 2020, the cumulative number of EVs was 1,217 units or 0.2% of all passenger cars in the country. The lowest-priced EV available in Singapore is priced at SGD110,000 to SGD120,000 including the certificate of entitlement, and the purchase cost is one of the key factors of consideration for EV adoption. Additionally, EVs’ reliance on charging stations limits long-distance driving today. 

EV and Battery Production Plan: It was recently reported that Hyundai Motors will invest SGD400 million to build an innovation centre in western Singapore. The company aims to manufacture 30,000 units of EVs a year by 2025. Ford Motors closed its plants decades ago, effectively ending car production in Singapore, and Dyson, a major vacuum cleaner manufacturer, abandoned plans to produce EVs in Singapore as it was considered to be unprofitable

Battery Reuse Plan: Although it is still in the early stage of battery reuse, some companies are starting to work on business development. It is reported that the Singapore utilities firm, SP Group and Hyundai Motor Group will jointly develop a new business model for the leasing of EV batteries. The new model, named battery-as-a-service, is said to be the first in Southeast Asia, and will enable EV users to rent the car battery instead of owning it. TES, announced that it is working with partners to develop energy storage systems that will use retired EV batteries to store electricity for various commercial and residential energy needs.

Thailand 

EV Policy and Target: In March 2020, the Thai government announced a new EV roadmap to lead the country to become a hub of EVs in ASEAN countries in 5 years. Under the roadmap, it is planned to set a target to produce 250,000 EVs and 3,000 electric public buses by 2025, and to increase EV production to 30% of total annual automotive production or about 750,000 units out of 2.5 million units in Thailand by 2030. Furthermore, the government aims to increase the adoption of EVs including hybrids (HEV) and plug-in hybrids (PHEV), and started promoting the alternative-powertrain vehicle industry in 2017 by launching incentives for automakers and parts suppliers. 

The Thai government also created technology-push policies to encourage the investment in the EV charging station business in the country such as subsidies for charging stations, setting a temporary 13 selling price for electricity, and building an EV charging consortium. Since 2015, the number of charging stations in Thailand has gradually increased to 647 as of November 2020.

Current Status of EV Introduction: After the launch of the EV policies, the number of EV registrations has steadily increased. Between 2018 and 2020, the number of HEV/PHEV registrations has increased steadily. Similarly, the number of registered BEVs has greatly increased from 325 units in 2018 to 2,999 units in 2020. Meanwhile, it also shows that the number of HEVs and PHEVs outnumber that of BEVs, and the share of EVs in the total automotive market has remained sluggish.

EV Battery Production Plan: According to Kasikorn Research Center (K-Research), EVs market share in the next 5 years will increase to one-quarter, or 240,000 units, of the total car sales nationwide. When EV production is approaching its full capacity in 2023, it is expected that at least 260,000 units of EV batteries will be rolled out to serve the demands in Thailand. Moreover, the prospects are bright for export-oriented EV batteries as many automotive companies have planned to produce EVs in Thailand at a large scale for export. Thailand can be a new production base for original equipment manufacturer batteries for export too.

Battery Reuse Plan: The application of battery energy storage systems in Thailand is in its infancy, and there is no official plan and target by the government with regard to battery reuse at present. Meanwhile, EV battery production is growing in Thailand. Toyota Motor has announced that the battery localisation will be realised by establishing an HEV battery production line in Thailand, and showed the plan for the future regarding the management of used HEV batteries under the project ‘Hybrid Battery Life Cycle Management’ in the form of rebuild, reuse, and recycle

Access the complete report here