Indonesia and China’s CATL Announce $1.2 Billion Battery Joint Venture
Indonesia has announced a joint venture with China’s Contemporary Amperex Technology (CATL) to invest $1.2 billion in battery production, furthering its ambitions to become a global hub for electric vehicles (EVs).
The Chinese battery giant, through its subsidiary CBL International Development, has formed the venture with government-owned Indonesia Battery Corporation, according to Bloomberg. The project, located in Karawang, West Java, aims to scale up battery production to 15 gigawatt-hours per year.
This collaboration marks an important step toward Indonesia's goal of building a complete supply chain for electric vehicles, a key initiative launched by outgoing President Joko Widodo. The government has sought to leverage its vast nickel production, a crucial material for batteries, to attract foreign investment in the EV sector.
Earlier this year, Hyundai Motor Group and LG Energy Solution opened Indonesia's first-ever battery cell plant, while China’s BTR New Material Group launched an anode material plant, contributing to the growing EV ecosystem in the country.
Chinese automakers such as BYD, Chery, SAIC, GAC Aion, and Vietnam-based VinFast are also setting up facilities in Indonesia, as noted by Maybank Research in August. The research firm said favorable regulations, local brands, and the penetration of Chinese carmakers will drive EV sales higher in ASEAN.
Maybank also pointed out that ASEAN companies partnering with Chinese carmakers for manufacturing and battery supply chain development could benefit from the EV boom, backed by battery minerals, a strong automotive production base, and robust demand. Electric car sales are picking up across ASEAN, particularly in Malaysia, Indonesia, and Vietnam.
