Indonesia, CATL form $1.2 billion battery venture
Chinese battery giant CATL, through its subsidiary CBL International Development, formed the venture with government-owned Indonesia Battery Corporation, the companies said in a statement.
Indonesia has announced a joint venture with Chinese battery giant CATL to invest USD 1.2 billion in battery production in the Southeast Asian country as it aims to become a global hub for electric vehicles.
CATL, through its subsidiary CBL International Development, formed the venture with government-owned Indonesia Battery Corporation, the companies said in a statement.
The project in West Java aims to scale up battery production to 15 GWH a year, according to media reports.
“This capacity will be enough to meet domestic and global demand,” IBC chief executive Toto Nugroho said.
The plant is expected to start production in 2027.
The Indonesian government seeks to take advantage of the country’s vast nickel reserves to attract foreign investors. Nickel is a crucial ingredient for some batteries.
Hyundai Motor and LG Energy Solution Ltd. opened the first-ever battery cell plant in the country earlier this year. China’s BTR New Material Group opened an anode material plant.
Indonesia has expanded its nickel production from two nickel smelters to 27 over the last 10 years, and more than 20 others are reportedly in the pipeline. In 2023, the country provided more than half the nickel ore supply globally. Demand has spiked as automakers need it for electric vehicle batteries, and large battery firms use it for clean electricity projects.
