ASIATODAY.ID, JAKARTA – Indonesia and China have formally deepened their strategic industrial ties through the establishment of a joint battery consortium, marking a new phase in Jakarta’s push to dominate the global electric vehicle (EV) supply chain.
The alliance was sealed with the signing of a Framework Agreement between Indonesia’s state-owned miner PT Aneka Tambang Tbk (ANTAM), Indonesia Battery Corporation (IBC), and China-backed HYD Investment Limited, witnessed by Minister of Energy and Mineral Resources Bahlil Lahadalia in Jakarta on Friday, January 30, 2026.
The move reinforces Indonesia’s downstream nickel strategy while positioning China as a key technological and market partner in Southeast Asia’s largest battery project.
“This negotiation has taken years. Our objective has always been to build a fully integrated battery ecosystem—from upstream nickel to downstream battery production,” Bahlil said.
China Brings Technology, Indonesia Holds Control
HYD Investment Limited represents major Chinese battery and materials giants Zhejiang Huayou Cobalt Co., Ltd. and EVE Energy Co., Ltd., alongside Indonesian partner PT Daaz Bara Lestari Tbk.
Despite China’s dominant role in global battery technology, Bahlil stressed that ANTAM will retain majority ownership, ensuring state control over Indonesia’s strategic mineral resources in accordance with Article 33 of the 1945 Constitution.
“Foreign partners are essential for technology and market access, but control must remain with the state,” Bahlil emphasized, citing direct instructions from President Prabowo Subianto.
USD 6 Billion Bet on Asia’s Battery Future
The Indonesia–China battery ecosystem is projected to reach 20 GWh in annual production capacity, placing it among the largest in Asia. Total investment is estimated at USD 6 billion, with around 10,000 jobs expected to be created.
The project will not only supply EV manufacturers but also support renewable energy storage, including Indonesia’s ambitious 100 GW solar power expansion.
Core facilities—including mines, smelters, and battery plants—are planned for East Halmahera, North Maluku, strengthening Indonesia’s role as China’s most critical nickel partner outside its borders.
A New Axis in the Global Battery Race
With China dominating battery manufacturing and Indonesia controlling the world’s largest nickel reserves, the partnership signals the emergence of a new Indonesia–China axis in the global energy transition—one that could reshape supply chains amid growing geopolitical competition between China, the US, and Europe.
“Indonesia will not remain a raw material supplier. We are building an industry that competes globally,” Bahlil concluded. (AT Network)
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