JAKARTA – Indonesia has officially broken ground on a £4.6 billion (US$5.9 billion) electric vehicle (EV) battery production megaproject backed by Chinese battery giant CATL, even as environmental groups raise alarms over the lack of ecological safeguards.
The ambitious development marks a major push in Indonesia’s effort to become a global EV powerhouse, capitalising on its position as the world’s largest nickel producer—a critical metal in EV batteries and stainless steel. A 2020 export ban on raw nickel has triggered rapid industrial growth in the country.
The project comprises two key investments:
- £3.7 billion (US$4.7 billion) in the eastern island of Halmahera, and
- £940 million (US$1.2 billion) in West Java, Energy Minister Bahlil Lahadalia announced during a groundbreaking ceremony in Karawang, West Java, attended by President Prabowo Subianto.
“According to my calculations, in five to six years, we will likely reach energy self-sufficiency,” said Prabowo in his speech.
Bahlil detailed that the Halmahera facility will focus on nickel mining, smelting, and cathode production—key components of rechargeable batteries—while the West Java complex will handle battery cell manufacturing.
Although the officials did not provide a full timeline for completion, Indonesian authorities have previously said that CATL’s plant in Halmahera is expected to be operational by March 2026.
Besides CATL, the Halmahera site is supported by Zhejiang Huayou Cobalt from China and Indonesia’s state-owned mining firm, Antam.
