The battery giant has announced a plan to join forces with ASX-listed, state-backed producer Aneka Tambang and its subsidiary Industri Baterai Indonesia, to invest almost US$6 billion in the Indonesia electric vehicle battery integration project, which will run the gamut from nickel mining and processing, EV battery materials, and battery manufacturing and recycling.

 

The aim of the three-way partnership is to promote Indonesia's electric vehicle industry, and leverage its nickel resources, which are the fourth largest in the world.

 

Indonesia's Grasberg mine also has the world's second-largest copper deposit, which is required for the production of batteries.

 

The project, to be primarily based in North Maluku province, is designed to ensure the supply of upstream raw materials and resources, lower manufacturing cost, and promote the development of recycling.

 

CATL chair and founder Robin Zeng said the investment was an important milestone for CATL as it expanded its global footprint.

 

While Indonesia's EV market was worth just $365 million in 2020, with EVs accounting for around 0.2% of sales, it is expected to reach $1.4 billion by 2027.

 

The nation announced an EV roadmap in September 2020, with plans to build thousands of charging stations across the archipelago. 

 

Indonesia's government expects to require investments of some $35 billion over the next five to 10 years to develop its EV ecosystem and secure a vital position in the EV supply chain.

 

The government wants to have 2.1 million electric motorcycles and 400,000 EVs on the road by 2025, with 20% of them being manufactured locally.

 

South Korea's LG Energy Solution's is understood to be investing almost $10 billion in building an EV battery cell industry, integrated with mining, smelting, refining, as well as the precursor and cathode industry. 

 

Indonesia is about to build its electric car, with Hyundai and LG collaborating on a plant in West Java that will produce EVs and batteries.