Indonesia Battery and Contemporary Amperex Technology (CATL) are planning to commission a new lithium-ion battery plant in Indonesia by 2026. According to the Indonesian Ministry of Energy, the site’s initial capacity will be 6.9 gigawatt-hours, with production intended for both domestic and export markets. This industrial project is part of a drive to expand battery manufacturing capacity in the Asia-Pacific region.
Towards increased production capacity
The partnership aims to raise the plant’s capacity to 15 gigawatt-hours to meet the rising demand for electric vehicle batteries. Dwi Anggia, spokesperson for the Indonesian Ministry of Energy, confirmed that production will serve a variety of national and international markets. This project is based on a $6bn agreement signed in 2022 between several Indonesian entities, including PT Aneka Tambang Tbk, and the Chinese consortium led by CATL.
Value chain integration and industrial development
The programme includes nickel extraction and processing, battery manufacturing, and recycling, thus covering the entire value chain. The Indonesian Minister of Energy, Bahlil Lahadalia, indicated that the site could also produce batteries for solar energy storage, bringing total potential capacity to 40 gigawatt-hours if discussions succeed. The main plant will be built in West Java, while nickel extraction operations will take place in North Maluku province, known for its mineral resources.
National targets and sector challenges
The Indonesian government has set a target to produce 600,000 electric vehicles by 2030, thirteen times more than the number of electric vehicles sold locally in the previous year. Indonesia holds the world’s largest nickel reserves, a critical resource for lithium-ion battery production and the development of the electric vehicle sector. The Ministry of Energy’s spokesperson noted that discussions remain open on expanding capacity for solar energy storage, Reuters reported on June 29.
