The future of energy security will depend less on who controls oil wells and more on who controls batteries, critical minerals and electricity storage systems.

That is why Saudi Arabia’s Public Investment Fund (PIF) should directly invest in battery storage factories in Indonesia.

The urgency has become clearer amid the Iran war and repeated instability around the Strait of Hormuz, one of the world’s most important energy chokepoints. The conflict exposed how vulnerable global supply chains remain to geopolitical shocks.

Governments are now realizing that energy security is no longer only about crude oil. It is also about securing battery materials, storage technology and industrial resilience.

Governments are now realizing that energy security is no longer only about crude oil. It is also about securing battery materials, storage technology and industrial resilience.

Saudi Arabia and Indonesia have complementary strategic advantages. Saudi Arabia has capital, industrial ambition and rising demand for battery storage systems. Indonesia has the world’s largest nickel reserves and is rapidly building a downstream battery ecosystem.

Last year, Riyadh and Jakarta signed agreements on critical mineral cooperation covering nickel, cobalt and manganese. But these agreements should move beyond mining cooperation into full-scale battery manufacturing.

Under Vision 2030, Saudi Arabia is investing heavily in renewable energy, electric mobility and smart infrastructure. Projects such as NEOM and large-scale solar developments will require massive battery storage capacity to stabilize electricity supply. Solar generation alone cannot support industrial expansion without reliable storage systems.

Yet Saudi Arabia still lacks a fully integrated battery manufacturing base.

Indonesia already........

© Middle East Monitor