- The plant is expected to have a total battery capacity of 15 GWh, enough to power 250,000 to 300,000 vehicles.
- The mega-project will also involve the development of nickel mines and smelters, as well as the construction of a battery precursor factory.
CATL (SHE: 300750) has begun construction on a $6 billion battery manufacturing plant in Indonesia, according to a report by Bloomberg yesterday.
The project is a joint venture between CATL, Indonesia's state-owned battery company Indonesia Battery Corp, and PT Aneka Tambang, located in Karawang regency, West Java province.
The factory is expected to have a total battery capacity of 15 GWh, capable of powering 250,000 to 300,000 vehicles, said Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia at the groundbreaking ceremony on Sunday, as cited by Bloomberg.
The joint venture also plans to produce battery energy storage systems for solar panels, according to the report.
"This groundbreaking is proof of our commitment and cooperation with our partners in China," Indonesian President President Prabowo Subianto said at the event.
The mega-project will also involve the development of nickel mines and smelters in the Halmahera region of North Maluku province, as well as the construction of a battery precursor factory.
Indonesia is seeking to enhance its position in the global metal supply chain by encouraging companies to build smelters, battery factories, and electric vehicle plants domestically, the report noted.
Prabowo called for more projects similar to the CATL battery project and said that Indonesia needs about 100 GWh to be really independent.
CATL is the world's largest electric vehicle (EV) battery manufacturer, holding a 38.1 percent global market share during the January to April period, according to data from South Korean market research firm SNE Research.
Last October, CATL established a joint venture with Indonesia's state-owned battery company Indonesia Battery Corp through its subsidiary CBL International Development.
Bloomberg reported last month that CATL was seeking about $1 billion in loans for its investments in Indonesia.
