The Minister of Energy and Mineral Resources (ESDM) announced that the CATL battery factory, part of the electric vehicle battery ecosystem project in Karawang, West Java, will commence production in the first half of 2026. The project is invested by China's Contemporary Amperex Technology Co., Limited (CATL) and is one of the nickel downstream processing projects supported by the Indonesian government. He stated at the ESDM performance summary meeting on January 8, 2025, that the battery factory has an investment of US$5.9 billion and is expected to create US$48 billion in added value for Indonesia.
The project had its groundbreaking ceremony in June 2025 presided over by President Prabowo, and is expected to commence production in the first half of 2026. The project aims to promote Indonesia's transition to renewable energy by establishing a complete electric vehicle battery ecosystem. He noted that the successful commencement of this project will help reduce the country's subsidies for imported oil, electricity, and fuel, potentially saving approximately US$58 billion annually.
The project is jointly owned by a consortium consisting of CBL, the Indonesian state-owned mining company (Antam), and the Indonesian Battery Company (IBC). CBL is a joint venture of CATL, Brunp, and Lygend. The construction of the project marks a significant advancement for Indonesia in the electric vehicle battery sector, and is expected to greatly enhance Indonesia's competitiveness in the global electric vehicle market. Additionally, the battery project jointly developed by Hyundai Motor with LG and IBC has already commenced production in July 2024, becoming the largest electric vehicle battery factory in Southeast Asia. The successful implementation of these projects not only drives Indonesia's industrial development but also provides important supply chain support for the global electric vehicle market.