CATL to build a battery factory in Indonesia


Recently, Indonesian Deputy Minister of Oceans and Investment Septian Hario Seto said in an interview with foreign media that CATL will invest 5 billion US dollars in Indonesia to build a lithium battery factory, which is expected to be officially put into operation in 2024.

As we all know, nickel is a key element in lithium batteries. Indonesia is the world’s largest nickel producer and exporter, but it does not have a complete nickel processing supply chain. In order to become a global production base for lithium battery vehicles and develop its own industry, Indonesia has begun to restrict nickel exports. In this context, lithium battery manufacturers can only go to Indonesia to invest in the establishment of factories.

According to reports, CATL has signed an agreement with Indonesian state-owned mining company PT Aneka Tambang, but CATL is required to ensure that 60% of nickel is processed into batteries in Indonesia. Septian Hario Seto said, “We don’t want others to get our nickel and then process it abroad.”

In addition to the CATL, LG Chem has also confirmed that it will invest in electric plants in Indonesia. It is reported that Tesla will send a delegation to Indonesia in January next year to discuss potential investments in its electric vehicle supply chain.

At present, the process of high nickel batteries is rapidly advancing. Some institutions predict that the proportion of nickel used in batteries is expected to increase significantly from 3% to 37% in 2030. It is estimated that by 2025 the amount of nickel used in batteries in the new energy automobile industry will reach 323,000 tons, an average annual growth rate of 52% compared to 2020; by 2030, the amount of nickel used will reach 845,000 tons, an average annual growth rate of 36% compared to 2020.