Indonesia Battery Corporation (IBC) and CBL International Development, a unit of Chinese battery giant Contemporary Amperex Technology (CATL), have formed a joint venture (JV) to establish a battery cell manufacturing plant in Indonesia. The investment for the plant is projected to reach $1.18 billion, according to a report from Indonesia’s state media, Antara.
The collaboration between IBC, a state-owned enterprise, and CATL’s subsidiary was first announced in 2022. The new JV aims to build a facility with a planned capacity of 15 gigawatt hours (GWh), which will be sufficient to meet both domestic and international demand, according to IBC Chief Executive Toto Nugroho.
This capacity will be enough to meet domestic and global demand, Toto Nugroho said. The battery plant is expected to begin production by 2027.
Electric vehicle (EV) market in Indonesia is expected to grow at a CAGR of 58.5 percent between 2023 and 2030. Indonesia’’s EV market value is projected to reach $20 billion by 2030, according to PwC.
Indonesia is positioning itself as a key player in the global battery and electric vehicle (EV) market by leveraging its significant nickel reserves, a critical component in battery production. The country’s efforts to build a domestic battery supply chain are part of a broader strategy to tap into the growing EV industry, reduce dependence on fossil fuels, and foster sustainable economic growth.
The IBC-CATL partnership is one of several initiatives aimed at boosting Indonesia’s industrial capacity in battery manufacturing, as the nation seeks to capitalize on its natural resources and transition towards becoming a major player in the electric vehicle supply chain.
The battery plant, once operational, will mark a significant milestone in Indonesia’s journey to become a key supplier of EV batteries, helping to meet both local and global demand for sustainable energy solutions.