This ambitious initiative aims to establish a comprehensive battery value chain within Indonesia, from nickel mining to battery recycling.
Contemporary Amperex Technology Co., Limited (CATL), a global leader in EV battery development, alongside its subsidiary Ningbo Contemporary Brunp Lygend Co., Ltd. (CBL), has officially broken ground on a monumental $6 billion battery integration project in Indonesia. This collaborative effort, undertaken with local partners PT Aneka Tambang Tbk (ANTAM) and Indonesia Battery Corporation (IBC), marks a pivotal moment for the global battery industry and Indonesia's aspirations to become a key player in the green energy sector.
The Indonesia Battery Integration Project is an unprecedented undertaking, spanning over 2,000 hectares and encompassing the entire battery value chain. This includes critical phases such as nickel mining and processing, battery materials production, battery manufacturing, and comprehensive battery recycling. Operations will be strategically located across multiple sites, with nickel mining, processing, battery materials, and recycling activities situated at the FHT Industrial Park of East Halmahera, North Maluku Province. Battery manufacturing will take place at the Karawang New Industry City (KNIC) and Artha Industrial Hill (AIH) in Karawang, West Java Province.
The scale of this project is immense, with a planned investment of nearly $6 billion. The first phase of the battery plant in Karawang is slated to deliver an annual capacity of 6.9 GWh. Leveraging CATL's renowned Lighthouse Factory and Extreme Manufacturing expertise, the facility is designed to ensure highly efficient production of high-quality battery cells and modules. This will directly support and accelerate Indonesia's e-mobility transition and broader energy transition efforts, with a significant impact on the global market.
A key innovation within this project is the establishment of Indonesia's first renewable energy circular system. This integrated system will see nickel mining and processing, battery materials production, and battery recycling operations co-located at the FHT Industrial Park. Furthermore, it emphasizes high-value battery material regeneration, boasting an impressive metal recovery rate of over 95%. Once fully operational, the facility is projected to produce 142,000 tons of nickel and 30,000 tons of cathode materials containing lithium compounds annually, alongside the capacity to process approximately 20,000 tons of recycled batteries.
Beyond its industrial significance, the Indonesia Battery Integration Project is poised to deliver substantial socio-economic benefits. The project is expected to create 8,000 direct jobs and generate an additional 35,000 indirect job opportunities once it reaches full capacity. This massive employment generation will significantly contribute to Indonesia's economic growth and its ambitious 2060 carbon neutrality target.
