ASIATODAY.ID, JAKARTA – Indonesia is taking a major step forward in its electric vehicle (EV) ambitions. Contemporary Amperex Technology Co. Limited (CATL), the world’s largest EV battery manufacturer from China, is expected to begin producing EV batteries in Indonesia no later than March 2026.
Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot Tanjung, confirmed the production timeline, stating that preparations are already well underway.
“They [CATL] are targeting to begin production in Indonesia by March 2026 at the latest,” Yuliot said during a press briefing at the Ministry of Energy and Mineral Resources in Jakarta, Friday, May 16, 2025.
CATL is partnering with Indonesia Battery Corporation (IBC) to develop a battery cell manufacturing facility in Indonesia. This project is part of a broader strategy to build a fully integrated EV ecosystem from upstream to downstream.
According to Yuliot, the first production phase will have a capacity of 7.5 gigawatt-hours (GWh) — half of the total target capacity of 15 GWh.
“The first phase has already secured approval from the Chinese government for 7.5 GWh,” he said.
The remaining 7.5 GWh will be financed through an Initial Public Offering (IPO), enabling the project to scale up to its full planned capacity.
In a promising development, CATL has already secured offtakers — or future buyers — from Europe and the United States. However, Yuliot declined to disclose specific vendor names at this stage.
“The production target remains unchanged at 15 GWh. CATL has confirmed buyers from overseas markets,” he added.
High-Level Talks: Government and CATL Discuss Project Progress
The battery investment project has the full backing of the Indonesian government. Senior officials, including Minister of Energy and Mineral Resources Bahlil Lahadalia, Minister of State-Owned Enterprises Erick Thohir, and Deputy Minister of Investment Todotua Pasaribu, recently met with CATL executives to discuss the next phase of development.
The meeting was also attended by Dony Oskaria, Chief Operating Officer of Daya Anagata Nusantara Investment Management Agency (Danantara), and Li Changdong, CATL’s Representative of the Chairman for Resource Affairs.
“We discussed the continuation of our collaboration between CATL and IBC to establish a battery cell manufacturing facility in Indonesia,” Erick Thohir stated via his official Instagram account.
Erick Thohir emphasized that this strategic partnership supports Indonesia’s ambition to become a key player in the global EV supply chain.
Indonesia is home to vast reserves of nickel and bauxite, two essential raw materials for lithium-ion battery production. This gives the country a competitive edge in the global EV market.
“This partnership is part of the government’s effort to transform Indonesia into a regional hub for EV and renewable energy industries in Southeast Asia,” Erick explained.
The initiative also aligns with Indonesia’s goal of reducing carbon emissions from fossil-fuel-powered vehicles and accelerating the clean energy transition.
The CATL-IBC partnership marks a significant milestone in Indonesia’s journey toward becoming a global EV manufacturing powerhouse. If the project stays on schedule, the first batteries will roll off production lines in 2026, signaling a new era for Indonesia in the world’s electric mobility landscape. (AT Network)
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