A lithium-ion battery manufacturing facility, developed through a partnership between Indonesian and Chinese companies, is expected to commence operations by the end of 2026. The plant, a joint venture between Indonesia Battery Corporation and China’s Contemporary Amperex Technology Co. Limited (CATL), will have an initial production capacity of 6.9 gigawatt hours (GWh), according to a statement from the Indonesian Ministry of Energy and Mineral Resources.
The facility is designed with future expansion in mind, targeting an eventual capacity of up to 15 GWh in electric vehicle battery output for both domestic use and international export. Dwi Anggia, spokesperson for the Ministry, confirmed the expansion plans as part of a broader ambition to position Indonesia as a critical player in the global battery supply chain.
This initiative forms a key component of a US$6 billion power battery investment deal signed in 2022, which includes multiple Indonesian state-linked companies—among them PT Aneka Tambang Tbk—and a consortium led by CATL. The multi-phase project encompasses nickel mining, materials processing, EV battery production, and end-of-life battery recycling.
At the ceremonial groundbreaking, Energy Minister Bahlil Lahadalia indicated the possibility of incorporating energy storage batteries for solar power into the plant’s production portfolio. Should this plan be realised, the total capacity of the plant could reach as high as 40 GWh, he noted. Discussions with the project stakeholders are ongoing to assess feasibility and scope.
The primary battery facility will be constructed in West Java, while upstream activities such as nickel extraction and processing will take place in North Maluku, an eastern province rich in nickel reserves.
Indonesia, which holds the world’s largest nickel deposits, has set a national target of producing approximately 600,000 electric vehicles by 2030—a 13-fold increase over the volume sold in 2024. The government views the localisation of battery manufacturing as pivotal to achieving its EV ambitions and strengthening its position in the global energy transition.
-Reuters
