State-owned mining company PT Aneka Tambang (Antam) has unveiled an ambitious plan to spearhead Indonesia’s nickel downstream industry and establish a complete electric vehicle (EV) battery ecosystem.

Antam President Director Achmad Ardianto told the House of Representatives’ Commission VI on Monday, September 29, 2025 that Antam aims to develop a fully integrated nickel supply chain, from mining to battery recycling.

“That’s why we have a strategy on how we can develop this independently in Indonesia,” he said.

Achmad cited that global nickel demand is still dominated by stainless steel, while the EV battery market is rapidly expanding. However, the global nickel market remains under China’s control. He stressed that Antam’s long-term goal is to help Indonesia achieve self-reliance in domestic production capacity.

Indonesia’s EV market shows significant potential. Out of one million cars sold annually, only around 40,000 are electric.

“The challenge is how to make regulations that drive greater EV adoption, but with a production base located in Indonesia,” Achmad said.

To achieve this vision, Antam signed six cooperation agreements with Contemporary Amperex Technology Co. Limited (CATL), the world’s largest battery manufacturer. The production chain will cover nickel mining, nickel powder processing, conversion into nickel sulfate or nickel cathodes, High-Pressure Acid Leach (HPAL) facilities to produce Mixed Hydroxide Precipitate (MHP), and battery cell manufacturing. Antam is also preparing a dedicated company for battery recycling, enabling the reuse of batteries aged 8–12 years.

“This will create a closed-loop ecosystem for EVs in Indonesia − from nickel mining, battery production, car manufacturing, and usage, to recycling of EV batteries,” Achmad said.

The total investment is estimated at nearly US$6 billion, with most facilities located in North Maluku, except for a battery plant in Karawang, West Java, strategically positioned near Indonesia’s automotive production hub. The project is run under Antam’s subsidiary Indonesian Battery Corporation (IBC), in partnership with State electricity company PLN, State energy company Pertamina, and State-owned aluminum producer Inalum, as well as global players like CATL.

In East Halmahera Industrial Area, Antam’s subsidiary PT Feni Haltim (FHT), together with Hong Kong CBL Limited, will develop a pyrometallurgical smelter with a target capacity of 88,000 tons of refined nickel alloy per year by 2027, a hydrometallurgical smelter producing 55,000 tons of MHP annually starting in 2028, and a Nickel Cobalt Manganese (NCM) cathode plant with a capacity of 30,000 tons per year. By 2031, the integrated zone is also expected to house a battery recycling facility producing 20,000 tons of metal sulfate and lithium carbonate annually.

Achmad emphasized that the initiative goes beyond investment value, aiming to reposition Indonesia as a strategic global energy player. “We want to ensure that Indonesia is not only an exporter of raw materials, but also a major player in the global EV battery supply chain,” he said.