Indonesia teams with CATL to deliver 15 GWh capacity battery cell plant

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State-owned Indonesia Battery Corporation (IBC) announced it has formed a joint venture with a unit of China’s battery giant Contemporary Amperex Technology Co (CATL) to build a battery cell manufacturing facility in West Java with an annual production capacity of 15 GWh.

IBC said it has signed an interim agreement and deed of establishment of a JV for battery cell manufacturing with CBL International Development.

The new JV is expected to invest up to $1.49 billion (USD 1.2 billion) to build a battery production facility in Karawang, a city east of the capital Jakarta. It is anticipated the project will be delivered in stages with the production capacity to gradually scale up to 15 GWh a year.

“This capacity will be enough to meet domestic and global demand,” IBC Chief Executive Officer Toto Nugroho said in a statement.

CATL is the largest electric vehicle (EV) battery manufacturer in the world with a global market share of about 37% in 2023. It supplies batteries to brands including BMW, Hyundai, Honda, Mercedes-Benz, Tesla, Toyota, Volkswagen, and Volvo.

The plant is expected to start production in 2027.

The IBC-CATL initiative is the latest for Indonesia which is looking to position itself as a key player in the global battery and EV market by leveraging its significant nickel reserves, a critical ingredient for some batteries.

Earlier this year Hyundai Motor Group and LG Energy Solution opened battery cell plant with an annual production capacity of 10 GWh in Karawang, while China’s BTR New Material Group launched an anode material plant that has an initial annual production capacity of 80,000 tonnes.

Indonesia aims to produce EV batteries with a total capacity of 140 GWh per year by 2030, which will account for between 4 to 9% of global demand.

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