Indonesia-China $6B Battery Plant Expected Operational by 2026

Indonesia and China's Contemporary Amperex Technology Co Ltd (CATL) are jointly developing a $6 billion electric vehicle (EV) battery production project aimed at leveraging Indonesia's vast nickel reserves and boosting its green energy transition. The venture includes a lithium-ion battery plant in West Java expected to begin operations by the end of 2026 with an initial capacity of 6.9 gigawatt hours, which is planned to expand up to 15 GWh and potentially to 40 GWh by integrating solar energy storage systems. The project encompasses nickel mining, refining, battery manufacturing, and recycling, with additional facilities in North Maluku focused on nickel processing. Indonesia aims to produce 600,000 EVs by 2030, significantly increasing from current levels and positioning itself as a key player in the regional and global EV supply chain. While the initiative is seen as a milestone towards energy self-sufficiency and a vertically integrated clean energy economy, environmental groups have raised concerns about the lack of environmental safeguards. The partnership highlights Indonesia's strategic push beyond raw material exports to become a global EV production hub and a major contributor to the clean energy transition.