CATL, a Chinese battery manufacturer, has officially started the construction of a new electric vehicle (EV) battery plant in Indonesia. This groundbreaking project is being carried out in collaboration with Indonesia Battery Corporation (IBC), forming a joint venture known as PT Contemporary Amperex Technology Indonesia Battery (CATIB). The plant, with a staggering cost of US$1.2 billion, is located near Karawang in Indonesia’s West Java Province.
The construction is set to be completed by the end of 2026, with an initial production capacity of approximately 7 gigawatt hours (GWh) of lithium-ion batteries per year. This production capacity is expected to more than double to 15 GWh per year by the end of the decade, as confirmed by Energy Ministry spokesperson Dwi Anggia.
This battery plant is just a part of a larger integrated EV battery manufacturing and supply chain project valued at a total of US$6 billion. The project, which was initially signed in 2022, includes the establishment of battery minerals mining and smelting operations in East Halmahera, North Maluku Province. The ANTAM-IBC-CBL Consortium, led by state-owned mining company PT Aneka Tambang Tbk (ANTAM), will oversee this operation. Additionally, there will be battery mineral processing operations, including high-pressure acid leach (HPAL) processing, to produce battery precursors and cathodes.
North Maluku, known for its rich mineral resources such as nickel, cobalt, and copper, will see the operation of a pyrometallurgical smelter by early 2027, with an annual capacity of 88,000 tons of refined nickel. A hydrometallurgical smelter is also in the pipeline, with a production capacity of 55,000 tons of mixed hydroxide precipitate annually by 2028. Moreover, a facility will be established to produce Nickel Cobalt Manganese (NCM) cathode materials with a capacity of 30,000 tons per year starting from 2028.
Indonesia has set an ambitious target to produce around 600,000 battery electric vehicles (BEVs) annually by 2030. The newly constructed plant will not only cater to the EV market but will also produce batteries for energy storage systems (ESS).
In conclusion, this massive project signifies a significant step towards sustainable and environmentally friendly transportation solutions in Indonesia. With the construction of this state-of-the-art battery plant and the establishment of a comprehensive supply chain, Indonesia is poised to become a key player in the global EV market.
