CATL Breaks Ground on $6 Billion Indonesian Battery Hub
Chinese battery titan Contemporary Amperex Technology Co. Ltd. (CATL) has broken ground on a nearly $6 billion project in Indonesia, marking a bold strategic move to secure crucial materials and expand its manufacturing footprint beyond China.
The project — a joint venture between CATL subsidiary CBL, Indonesia’s state-owned miner PT Aneka Tambang (Antam), and the state-backed Indonesia Battery Corporation (IBC) — has officially started construction, CATL said Wednesday.
More than three years in the making, the initiative underscores the ambition of the world’s largest battery manufacturer to reinforce its global standing amid increasingly complex geopolitical dynamics.
Spanning the full battery supply chain — from nickel mining and smelting, battery materials production, cell manufacturing, to recycling — the project will be spread across two Indonesian locations. Backed by nearly $6 billion investment, it aims to produce enough batteries each year to power between 200,000 and 300,000 EVs, with potential expansion into energy storage.
Indonesian President Prabowo Subianto, who attended the groundbreaking ceremony, hailed the venture as “hugely important and mutually beneficial.” The government estimates the development will generate 8,000 direct and 35,000 indirect jobs, helping the nation move from being a mere exporter of raw materials to a central force in the EV ecosystem. Indonesia is home to the world’s largest nickel reserves.
The project covers more than 2,000 hectares. Nickel mining, smelting and recycling facilities will be in East Halmahera, North Maluku province, while the battery manufacturing plant will be in Karawang, West Java. The plant’s first phase targets a capacity of 6.9 gigawatt-hours and is expected to meet “lighthouse factory” standards, incorporating advanced technologies such as AI and 5G.
First unveiled in April 2022, the project had shown limited visible progress until now. It comprises six sub-projects, with CATL holding a controlling stake — ranging from 60% to 70% — in five of them, including those focused on smelting, materials, cell production and recycling. Antam will co-lead smelting operations, while IBC will co-manage the battery-related segments.
The project represents CATL’s latest move to mitigate geopolitical risks and trade tensions by diversifying manufacturing. The vertically integrated Indonesian base, operating under a free-trade agreement with the United States, could ease the company’s path to Western EV markets.
Once operational, the project is expected to produce 142,000 metric tons of nickel and 30,000 metric tons of cathode materials each year. It will also host Indonesia’s first battery recycling facility powered by renewable energy, with a capacity to process 20,000 tons of used batteries per year, with a targeted metal recovery rate of 95%.
Contact reporter Han Wei (weihan@caixin.com)
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