CATL Moves to Establish Battery Cell Production in Indonesia
Image: CATL
A subsidiary of the Chinese battery manufacturer CATL has partnered with the state-owned Indonesia Battery Corporation (IBC) to advance battery cell production in Indonesia. This collaboration has been in development for some time, with both parties having previous working relationships.
Reports indicate that the joint venture plans to invest up to $1.18 billion (approximately €1.09 billion) in a facility located in Karawang, West Java, with a goal of achieving an annual production capacity of 15 GWh. Production is anticipated to commence in 2027.
The CATL subsidiary involved is CBL International Development, while IBC, also known domestically as Industri Baterai Indonesia (IBI), aims to create a comprehensive battery supply chain for electric vehicles within the country. CATL has been linked to battery manufacturing initiatives in Indonesia since late 2020.
The Indonesian government is actively seeking investments from the eMobility sector, capitalizing on its significant nickel reserves. The Jakarta administration aims to not only exploit these resources but also foster value-added industries through nickel processing, battery production, and vehicle manufacturing. Recently, for instance, Hyundai and LG Energy Solution launched a battery cell factory in Indonesia, while Hyundai opened a vehicle assembly plant in 2022.
In the same year, CATL announced a tripartite agreement involving its subsidiary Brunp, IBC, and Antam, which is part of the Indonesian state-owned mining company. This agreement included a commitment from CATL to invest nearly €5.5 billion in Indonesia, focusing on nickel extraction and processing, battery materials, production, and recycling efforts.
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