Indonesia has announced a partnership with China’s Contemporary Amperex Technology Co. Ltd. to invest $1.2 billion in battery manufacturing within the Southeast Asian nation, advancing its goal of becoming a global center for electric vehicles.
The collaboration, established through CBL International Development, a subsidiary of the Chinese battery manufacturer, and the state-owned Indonesia Battery Corporation, was detailed in a joint statement. The initiative, located in Karawang, West Java, aims to increase battery production capacity to 15 gigawatts annually.
This initiative represents a significant milestone in Indonesia’s strategy to develop a comprehensive supply chain for electric vehicles, a key objective set forth by outgoing President Joko Widodo. The government is seeking to capitalize on its abundant nickel resources, a crucial component for certain batteries, to attract foreign investment in the electric vehicle industry.
Earlier this year, Hyundai Motor Group and LG Energy Solution Ltd. inaugurated the first battery cell manufacturing facility in Indonesia, while China’s BTR New Material Group established a plant for anode materials.