Chinese battery manufacturer CATL has officially begun construction on a battery plant in Karawang, West Java. The project is part of a six-billion-US-dollar joint venture with state-owned company Indonesia Battery Corporation and mining specialist PT Aneka Tambang. The first phase of expansion is expected to increase production capacity to 6.9 gigawatt-hours per year, with the potential to reach 15 gigawatt-hours. The Indonesian government estimates that production will begin at the end of 2026.
Worldʼs largest nickel reserves
CATL plans to produce battery cells for electric vehicles and storage systems for solar power plants. Including these storage solutions, the siteʼs total capacity could reach 40 gigawatt-hours in the long term. The project also includes nickel mines and smelters in North Maluku, where Indonesia believes the worldʼs largest nickel deposits are located. Indonesia has the worldʼs largest known nickel reserves and aims to use the raw material as an export commodity and in domestic value chains. This provides CATL with direct access to the materials needed for cathode production. The agreement also includes plans to build a factory to produce battery precursors.
