Indonesian President Prabowo attends the groundbreaking ceremony in person. (Photo: Indonesia's presidential office)
Chinese EV battery giant Contemporary Amperex Technology Co. Limited (CATL) officially broke ground on a new factory in Indonesia on June 29. The project aligns with President Prabowo Subianto’s vision to establish a complete battery supply chain starting from mining and is expected to boost employment and drive economic growth. The plant’s design also emphasizes sustainability, aiming to minimize environmental impact.
Full operations by 2028, with capacity to power 300,000 EVs
The battery plant, located in Karawang, West Java, represents a $5.9 billion investment. Key stakeholders include Indonesia Battery Corporation (IBC), mining giant Aneka Tambang, CATL, Brunp Recycling (a CATL subsidiary), and Chinese battery materials producer Lygend Resources. The facility is designed with capacity of up to 15 gigawatts (GW).
Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia stated at the groundbreaking ceremony that the factory will be capable of powering 250,000 to 300,000 electric vehicles. It will also produce batteries for solar energy storage, with total capacity expected to rise to 40 GWh upon completion of the second phase by 2028. Operations are scheduled to begin in 2026.
To support production, Indonesia plans to source nickel from North Maluku’s East Halmahera regency, one of the country’s most significant nickel mining regions. The newly developed integrated battery industrial park there is a critical part of Indonesia’s end-to-end battery supply chain strategy.
The CATL‘s new battery plant, located in Karawang, West Java, represents a $5.9 billion investment. (Photo: CATL)
Industrial park to feature solar, waste heat recovery for lower emissions
The industrial park, with a total investment of $4.7 billion, will include five key facilities: two battery materials smelters, one nickel mine, a nickel-cobalt-manganese (NCM) cathode factory, and a battery recycling plant. All facilities are expected to be operational by 2031.
Until the park is fully operational, the Karawang plant will rely on imported materials from China. Around 30% of the batteries produced are slated for export, with potential buyers including EV manufacturers in Japan, the U.S., and India.
Originally scheduled to begin construction in 2023, the Karawang project faced delays due to power shortages. The Indonesian government has since resolved the issue by adding 24 MW of solar power at the site and increasing power supply to the industrial park by 400 MW, including two coal-fired power plants.
Covering 3,000 hectares, the Karawang battery facility is expected to create over 8,000 jobs and catalyze 18 major infrastructure projects, including a multifunctional port. To enhance environmental sustainability, the facility will integrate solar photovoltaic systems and waste heat recovery in its operations.
Indonesia aims to leverage its mineral wealth to play a central role in the global battery supply chain and enhance energy self-sufficiency. In addition to CATL, other major players such as U.S. mining company Freeport, South Korea’s LG Energy Solution (LGES), and China’s BYD are also expanding their battery-related investments in Indonesia.
Source: Reuters, Bloomberg, Nikkei Asia, Jakarta Globe
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