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CATL slashes funding for Indonesian EV battery project by 65%
The Chinese investor has cited weak global demand and shifting market dynamics as reasons for the cutback, which comes on the heels of LG's announced withdrawal from a broad EVB supply chain project for similar reasons.
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Boxes of battery cells are stored for shipment on August 28, 2024, at the manufacturing plant of PT HLI Green Power, Indonesia's first electric vehicle battery cell manufacturer, in Karawang, West Java. (AFP/Yasuyoshi Chiba)
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hina’s leading battery maker Contemporary Amperex Technology Co. Ltd. (CATL) is scaling back its investment in Indonesia’s electric vehicle battery (EVB) project by slashing both funding and estimated capacity due to weak global demand and shifting market projections.
Despite the cutback, the government insists its battery industry road map remains on track.
“The current demand for electric vehicle batteries hasn’t reached the level anticipated in the original projections. It’s only logical to reassess global capacity based on that,” Nurul Ichwan, investment promotion undersecretary at the Investment and Downstream Ministry, said on Wednesday, as quoted by Bisnis.com.
“We’ve just gone through a period of reevaluation, and the new numbers actually look promising,” he added.
Read also: President Prabowo shrugs off LG pulling out from battery investment
Ichwan said the project had been adjusted following a review by the Chinese government, which approves and regulates outbound investments under its outward direct investment (ODI) scheme.
He underlined that the project was still part of Beijing’s strategic outward push, but had been scaled to better match current market dynamics and expected returns.
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