PT Industri Baterai Indonesia (IBC) is making significant strides in the battery industry by signing an interim agreement and establishing a joint venture for battery cell manufacturing with CBL International Development Pte Ltd.
CBL International Development is a business unit of Contemporary Amperex Technology Co (CATL), the world’s largest electric vehicle (EV) battery company.
Deputy Minister of State-Owned Enterprises, Kartika Wirjoatmodjo, emphasized the importance of this initiative in attracting investors and expediting project execution.
“We must act swiftly, remain agile, and adapt to technological changes in the electric vehicle sector to enhance our competitiveness,” Kartika stated, on Friday, October 18, 2024 as quoted by Antara.
The partnership between IBC and CBL is part of IBC’s strategic efforts to promote nickel downstream processing and develop an integrated battery industry, addressing supply chains from upstream to downstream. This project is expected to meet both domestic needs and global demand.
CEO of IBC, Toto Nugroho, revealed that the battery cell manufacturing project located in Karawang, West Java, is currently in its initial phase.
“Together, IBC and CBL plan to gradually develop this project, targeting a total investment of USD 1.18 billion and an annual production capacity of 15 GWh, sufficient to meet both domestic and international demand,” he said.
Gordon An, General Manager for International Business Manufacturing Operations at CATL, highlighted the crucial role of battery factories in building Indonesia’s electric vehicle ecosystem.
“We are eager to leverage our strengths in technology and manufacturing and look forward to collaborating with our partners in Indonesia to support the country’s electrification efforts,” he said.
With Indonesia’s abundant nickel reserves, this project is expected to strengthen the country’s position in the global supply chain, while also generating significant economic benefits such as job creation, increased foreign investment, and enhanced renewable energy industry capacity domestically.
