On June 29, a historic groundbreaking ceremony was held in the Karawang Industrial Park, West Java, Indonesia, marking the official launch of the largest power battery project in Southeast Asia, a joint venture between China and Indonesia. The project, invested in by CBL (a subsidiary of CATL), Indonesia Battery Corporation (IBC), state-owned mining company Aneka Tambang, and others, involves a total investment of $6 billion (approximately Yuan 43 billion). It is expected to be completed and operational by the end of 2026, with an initial annual production capacity of 6.9 GWh.
Dwi Anggia, a spokesperson for Indonesia's Ministry of Energy, stated that the factory is projected to scale up production to manufacture EV batteries with an energy storage capacity of up to 15 GWh, adding that the products will be sold in both domestic and international markets.
The JV between Chinese giant CATL and IBC is part of a $6 billion power battery project signed in 2022, which also involves state-owned mining firm PT Aneka Tambang Tbk (ANTM.JK) and a CATL-led consortium. The collaboration covers nickel mining and processing, EV battery manufacturing, and battery recycling.
At the project's groundbreaking ceremony, Indonesian Energy Minister Arifin Tasrif stated that the factory may also produce batteries for storing energy from solar panels. "Including solar panel batteries, the plant's total production capacity could reach 40 GWh," he said.
The battery plant will be constructed in West Java, while other sub-projects will be located in North Maluku, an eastern Indonesian Province rich in nickel resources.
Indonesia holds the world's largest nickel reserves, and the government has set an ambitious target of producing around 600,000 EVs by 2030, roughly 13 times the country's EV sales last year.
Edited by Cassie Li, lixiangying@mysteel.com
