China and Indonesia cooperate to set up electric vehicle battery production enterprise

A state-owned investment holding company operating in the renewable energy materials sector, PT Industri Battery Indonesia or Industry Battery Corporation (IBC), is working with the world's largest electric vehicle (EV) battery company, CBL International Development Pte Ltd, the business unit of CATL.This cooperation is through the formation of a joint venture (JV) for the production of batteries. In this cooperation, IBC is a joint venture between PT ANTAM Tbk, PT Indonesia Asahan Aluminium, PT Pertamina (Persero) and PT PLN (Persero) involved in the downstream value chain, including battery material manufacturing, battery manufacturing and battery recycling.Deputy Minister BUMN said that given the the industry's need to have opportunities for a bright future, executing strategic projects requires quick, agile and adaptive steps. They must observe the technological changes that are occurring in the electric vehicle sector so that they can become more competitive and hope to see the results of the joint venture signed today i.e. finished batteries in 2027. Considering Indonesia's potential nickel reserves, he expects to be able to strengthen Indonesia's position in the global EV battery supply chain. In addition to this, the project is also expected to have a significant economic impact on Indonesia, such as creating jobs, attracting foreign investment and increasing the capacity of Indonesia's renewable energy industry.

The project is also in line with support for Indonesia's commitment to achieve its net-zero emissions target by 2060.IBC's President Director said the partnership is a strategic effort by IBC to encourage the development of nickel downstream projects and the integrated battery industry, as well as the development of a supply chain for electric vehicle batteries from upstream to downstream. This initiative aims to strengthen Indonesia's position as a major player in the global battery market. Their JV 5 battery manufacturing project is now in its initial phase and is located in Karawang, West Java.IBC and CBL hope to work together to develop the project in phases, with a total investment of US$1.18 billion, to reach a total production capacity of 15GWh per year, which is more than sufficient to meet domestic and global demand. Meanwhile, the General Manager of Manufacturing Operations of International Business of Ningde Times said that the battery factory project is a key component of Indonesia's efforts to build an electric vehicle and battery industry chain and ecosystem. Ningde Times is willing to actively leverage its technological and manufacturing innovation advantages, and looks forward to working with Indonesian partners to support the development of electrification in Indonesia.