Lithium battery plant between Indonesia and China set to become operational by the end of 2026, confirms official report
Indonesia is set to embark on a significant venture with China's Contemporary Amperex Technology Co. Limited (CATL) and Indonesia Battery Corporation (IBC), as they jointly invest $6 billion in a lithium-ion battery plant. Located in the Karawang Industrial Park, West Java, the plant is expected to be operational by the end of 2026 with an initial annual production capacity of 6.9 gigawatt hours (GWh).
The ambitious expansion plans for the facility include a potential increase in production capacity up to 15 GWh, focusing on electric vehicle (EV) batteries for both domestic and international markets. Furthermore, there is potential for the plant to produce batteries designed specifically for energy storage from solar panels, which would further increase the plant's total capacity to 40 GWh. Discussions are ongoing to finalize these plans.
The project encompasses a full battery ecosystem, involving nickel mining and processing, battery manufacturing, and recycling. Indonesia's vast nickel reserves, the largest in the world, provide a strategic advantage, supplying essential materials for lithium-ion battery production. Additional sub-projects, including a battery precursor factory and smelters, are planned in North Maluku Province, reinforcing the vertical integration of the supply chain.
This lithium-ion battery plant plays a crucial role in Indonesia's aim to produce around 600,000 electric vehicles by 2030, marking a substantial growth from current EV sales. The project thus strengthens Indonesia’s position in the global EV battery supply chain and supports renewable energy integration through solar battery production.
In summary, the Indonesia-China lithium-ion battery plant project represents Southeast Asia’s largest power battery venture and signifies a significant leap in Indonesia’s industrial capacity in lithium-ion battery manufacturing, as well as its contribution to global EV and renewable energy markets.
### Key Details
* Investment: $6 billion * Location: Karawang Industrial Park, West Java (plant); North Maluku (supporting facilities) * Initial battery capacity: 6.9 GWh (by end of 2026) * Planned expanded capacity: 15 GWh (EV batteries), up to 40 GWh including solar storage batteries * Partners: CATL (China), Indonesia Battery Corp, PT Aneka Tambang (Indonesia) * Strategic components: Nickel mining/processing, battery manufacturing, recycling * Role in EV production goals: Supports Indonesia’s aim for 600,000 EVs by 2030 * Renewable energy focus: Potential production of batteries for solar panel energy storage
[1] The Jakarta Post, "Indonesia, China to build $6 billion lithium battery plant," 2022. [2] Reuters, "Indonesia to build $6 billion lithium-ion battery plant with China's CATL," 2022. [3] Nikkei Asia, "Indonesia to build $6 billion lithium-ion battery plant with China's CATL," 2022.
- This $6 billion investment in a lithium-ion battery plant by Indonesia and China's CATL, located in the Karawang Industrial Park, is a significant move in the renewable energy industry, as it aims to produce batteries for electric vehicles (EVs) and solar panel energy storage.
- As part of this venture, the partners are planning to expand the production capacity of the plant, with potential growth up to 15 GWh for EV batteries and up to 40 GWh including batteries for solar panel energy storage.
- The investment also includes strategic components such as nickel mining and processing, battery manufacturing, and recycling, with additional supporting facilities planned in North Maluku Province.
- This project not only reinforces Indonesia’s position in the global EV battery supply chain but also supports renewable energy integration by strengthening the country’s aim to produce around 600,000 electric vehicles by 2030.
- Moreover, the expansion of the plant's production capacity and focus on renewable energy align with the broader technological trends in the data-and-cloud-computing and auto-racing industries, where energy-efficient solutions are increasingly essential.
- Financing the construction and operation of this lithium-ion battery plant represents a substantial investment opportunity for both domestic and international businesses, further demonstrating the potential growth and impact of the renewable energy sector in Indonesia.
