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Published Sun, Jun 29, 2025 · 05:45 PM
THE world’s top maker of electric-vehicle batteries broke ground on a US$6 billion battery material ecosystem in Indonesia as the government pushes ahead with commodity downstreaming goals.
China’s Contemporary Amperex Technology Co Ltd (CATL), in a joint venture with state-owned Indonesia Battery Corp and Aneka Tambang, will construct a battery cell plant in the Karawang regency in the West Java province.
The estimated total battery capacity is 15 gigawatts (GW), which can generate power for 250,000 to 300,000 cars, Energy and Mineral Resources Minister Bahlil Lahadalia said at the groundbreaking ceremony on Sunday (Jun 29). The venture also plans to produce battery storage for solar panels.
“This groundbreaking is proof of our commitment and cooperation with our partners in China,” President Prabowo Subianto said at the event. “This is a breakthrough, a colossal one.”
The mega-project will also involve the development of nickel mines and smelters, and a battery precursor factory in the Halmahera region of North Maluku province.
Indonesia is seeking to move up the global metals supply chain by having companies build smelters, battery factories and electric vehicle factories in the country. Companies including Freeport Indonesia, LG Energy Solution and BYD have billion dollar outlays along the metals supply chain.
Prabowo pledged to accelerate this initiative during his presidency, and said this would also help South-east Asia’s largest economy achieve energy self-sufficiency. He also called for more projects similar to CATL’s battery venture, saying Indonesia needs roughly 100 GW “to be really independent”. BLOOMBERG
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