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IBC forms $1.2b joint battery venture with China’s CATL
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Fossil free?: A Chinese-made electric car is pictured in Jakarta on June 7, 2023. The government is seeking to incentivize motorists to shift from combustion engines to electric vehicles. (AFP/Bay Ismoyo)
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tate-owned Indonesia Battery Corporation (IBC) has announced a joint venture with a subsidiary of China’s Contemporary Amperex Technology Co. Ltd. (CATL) to invest US$1.2 billion in a battery factory.
Under the project, CATL’s CBL International Development will build a battery production facility in Karawang, West Java, and gradually scale up the capacity to 15 gigawatt-hours (GWh) a year to meet domestic and international demand.
Deputy State-Owned Enterprises (SOEs) Minister Kartika Wirjoatmodjo said Indonesia had to take swift, agile and adaptive steps to execute key projects to seize opportunities in the electric vehicle battery industry.
“We must observe the emerging technological changes in the EV sector to become more competitive. Hopefully, in 2027, we will be able to see the results of the battery cell joint venture signed today,” he said, as quoted by CNBC Indonesia.
Indonesia is developing an integrated EV supply chain and aims to become one of the world’s top three producers of EV batteries by 2027, leveraging an abundance of natural resources, particularly nickel, to establish an end-to-end domestic EV market.
Further, Indonesia aims to produce EV batteries with a total capacity of 140 GWh per year by 2030, which it estimates will account for between 4 and 9 percent of global demand.
Charting an ambitious course in the global EV industry, Southeast Asia’s largest economy aims to manufacture 1 million EV cars by 2035, according to a 2022 Industry Ministry regulation.
