Indonesia forms $1.2B EV battery venture with CATL
Indonesia forms $1.2B battery venture with China’s EV battery maker CATL -report
October 18, 2024
In an effort to advance its goals of becoming a global center for electric vehicles (EVs), Indonesia has announced a joint venture with China’s Contemporary Amperex Technology Co Ltd (CATL) to invest $1.2 billion in battery production in the Southeast Asian nation
According to a statement from the companies, Bloomberg reported that the government-owned Indonesia Battery Corporation and the Chinese cell manufacturing behemoth, through its subsidiary CBL International Development, formed the venture.
According to the report, the Karawang, West Java, project intends to increase battery production to 15 gigawatts annually.
The action also represents a significant step toward Indonesia’s objective, which was established by outgoing President Joko Widodo, to establish a comprehensive supply chain for electric vehicles.
The government has tried to attract foreign investors to the EV industry by using its extensive production of nickel, a crucial component of some batteries.
According to the report, China’s BTR New Material Group opened an anode material plant earlier this year, and Hyundai Motor Group and LG Energy Solution Ltd opened the nation’s first battery cell plant.
According to a note published in August by Maybank Research, Chinese automakers like BYD, Chery, SAIC, GAC Aion, and VinFast, based in Vietnam, are establishing facilities in Indonesia.
Favorable laws, regional brands, and the entry of Chinese automakers, according to the research firm, will increase EV sales in ASEAN.
The research firm also pointed out that ASEAN businesses that are collaborating with Chinese automakers for production and sales, as well as battery value chain businesses, may profit from the EV rush, which is supported by a sizable automotive production base, strong demand, and battery minerals and ecosystem.
Maybank reports that sales of electric cars are increasing in ASEAN, primarily in Malaysia, Indonesia, and Vietnam.
About CATL
CATL, or Contemporary Amperex Technology Co., Limited, is a leading Chinese manufacturer of lithium-ion batteries, primarily focused on the electric vehicle (EV) sector. Founded in 2011, CATL has quickly grown to become one of the largest battery suppliers in the world, partnering with various automakers, including Tesla, BMW, and Volkswagen.
The company’s main products include battery cells, battery packs, and energy storage systems. CATL is known for its innovations in battery technology, particularly in enhancing energy density, reducing charging times, and improving the overall lifespan of batteries. They have also invested heavily in research and development to advance solid-state battery technology, which promises increased safety and performance.
In addition to EV batteries, CATL is expanding into energy storage solutions for renewable energy, responding to the growing demand for sustainable energy systems. The company has established production facilities both in China and internationally, including plants in Europe and North America, to meet the increasing global demand for EV batteries.
Information compiled with assistance of MERLIN
