Indonesia to launch CATL-backed EV battery project in Halmahera

Indonesia will begin constructing its first integrated electric vehicle (EV) battery ecosystem project in Halmahera, North Maluku, on June 29, 2025.

The groundbreaking ceremony will be led by President Prabowo Subianto, as confirmed by Minister of Energy and Mineral Resources, Bahlil Lahadalia.

The project is a collaboration between Chinese investor Contemporary Amperex Technology Co. Limited (CATL) and a national consortium that includes Danantara.

It will cover the entire EV battery production process, including nickel mining, smelter development, precursor and cathode production, battery cell manufacturing, and recycling facilities.

The estimated investment for the project is US$6 billion.

🔗 Source: Kompas.com

🧠 Food for thought

1️⃣ Indonesia’s nickel reserves are powering its ambitious vertical integration strategy

Indonesia is strategically leveraging its position as the world’s largest nickel holder to climb the EV value chain, rather than remaining a mere raw material exporter.

The country possesses 22% of global nickel reserves and became the top producer with 1 million tons in 2021, making it uniquely positioned to develop an integrated battery ecosystem 1.

The government’s export ban on nickel ore has successfully redirected foreign investment toward domestic processing facilities, with the $6 billion CATL project representing the culmination of this strategy.

This vertical integration approach aligns with Indonesia’s goal of producing 140 GWh of battery capacity annually by 2030, which would represent 4-9% of global production 2.

The Halmahera project’s comprehensive scope, covering mining through recycling, demonstrates Indonesia’s determination to capture more value from its natural resources than traditional extraction economies.

2️⃣ China’s growing dominance in Indonesia’s EV battery sector reflects shifting geopolitical realities

The CATL-led project in Halmahera follows a pattern of increasing Chinese influence in Indonesia’s EV battery industry, highlighted by recent investor transitions.

Just months ago, China’s Huayou Cobalt replaced South Korea’s LG Energy Solution in the $9.8 billion Titan Project after LG withdrew citing “unfavorable market conditions and regulatory inconsistencies” 3.