Indonesia, CATL to Launch Major Lithium-Ion Battery Plant by 2026

Indonesia is ramping up its position in the global clean energy supply chain with the construction of a lithium-ion battery plant set to begin operations by the end of 2026.

The facility, a joint venture between Indonesia Battery Corporation (IBC) and Chinese battery manufacturing giant Contemporary Amperex Technology Co. Ltd. (CATL), will have an initial production capacity of 6.9 gigawatt-hours (GWh), according to Indonesian energy ministry spokesperson Dwi Anggia.

The plant is expected to expand over time to produce up to 15 GWh of electric vehicle (EV) batteries, which will serve both domestic and international markets. Discussions are also underway to include the production of battery units specifically designed to store solar energy. If approved, total production capacity could rise to as much as 40 GWh, according to Indonesian Energy Minister Bahlil Lahadalia.

“This expansion would significantly boost our energy resilience and accelerate the transition to renewables,” Lahadalia said during the project’s groundbreaking ceremony.

Located in West Java, the battery manufacturing facility is part of a broader $6 billion strategic partnership signed in 2022. The initiative brings together Indonesia’s state-owned miner PT Aneka Tambang (Antam), IBC, and a consortium led by CATL, and covers the full EV battery value chain, from nickel mining and processing to battery production and recycling.

The remaining subprojects under the agreement, including nickel processing operations, will be situated in North Maluku, Indonesia’s nickel-rich eastern province.

Indonesia, which holds the world’s largest nickel reserves, is aggressively positioning itself as a key player in the electric vehicle revolution. The government aims to produce 600,000 EVs annually by 2030, a significant jump from the roughly 46,000 units sold in the country last year.

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