Chongqing - A joint venture formed by CATL’s subsidiary CBL, Indonesian state-owned mining company ANTAM, and Indonesian battery company IBC has officially broken ground on a major nickel and battery industrial chain project in Indonesia.

Recently, a consortium formed by CATL's subsidiary CBL, Indonesian state-owned mining company ANTAM, and Indonesian battery company IBC held a groundbreaking ceremony in Indonesia for a jointly invested nickel and battery industrial chain project. (Photo/CATL)

The project, which is planned to invest nearly 6 billion USD and cover more than 20 square kilometers, encompasses nickel mining, smelting, battery materials manufacturing, battery recycling, and battery production.

The first phase of the battery manufacturing plant is designed with an annual production capacity of 6.9 GWh, which is expected to support the battery supply for approximately 200,000 to 300,000 electric vehicles annually.

The factory will be built to “Lighthouse Factory” standards—a designation jointly awarded by the World Economic Forum and McKinsey & Company. It represents the forefront of global smart manufacturing and integrates advanced technologies such as IoT, AI, and big data.

Within the project structure, CATL holds controlling stakes—ranging from 60% to 70%—in all segments except nickel mining, underscoring its influence over the overall initiative.

Nickel resource considerations primarily drive CATL’s strategic expansion into Indonesia. Nickel plays a vital role in EV batteries, particularly in NMC (nickel-manganese-cobalt) lithium batteries, directly impacting performance. It also improves energy density, reduces costs, and maintains chemical stability in solid-state batteries. According to a report cited by Securities Daily from Soochow Securities, Indonesia holds 22% of the world’s nickel reserves, providing a solid foundation for battery industry development.

Another key factor behind the project’s implementation is strong government backing. ANTAM is a publicly listed state-owned mining company under the control of Indonesia’s Ministry of Finance. IBC, established by state-owned enterprises such as PT Pertamina, focuses on investing in battery and related industrial chain projects both domestically and abroad.

Indonesian President Prabowo Subianto attended the groundbreaking ceremony in person. He emphasized that the global shift toward electric vehicles presents a historic opportunity that Indonesia must seize. Processing nickel into EV batteries and advancing downstream integration of resources is a long-term strategic path Indonesia must pursue.

According to Caixin, CATL’s involvement in the Indonesia project dates back to April 2022, when CBL signed an agreement with ANTAM and IBC to jointly develop a full industrial chain—from nickel mining to battery production—with a planned construction period from 2022 to 2026. Few updates have been released since then.

Upon completion, the project is expected to make Indonesia the largest EV battery production hub in ASEAN. Once operational, local authorities project that the facility will generate 8,000 direct jobs and 35,000 indirect employment opportunities.

Beyond the battery production chain, CATL also plans to establish Indonesia’s first local renewable energy recycling system. The goal is to achieve ultra-low energy consumption and a metal recovery rate of over 95% for high-value battery materials. Upon full operation, the facility is expected to produce 142,000 tons of nickel and 30,000 tons of cathode materials annually, while processing approximately 20,000 tons of used batteries each year.