A lithium-ion battery plant being developed by Indonesia Battery Corp (IBC) and China’s Contemporary Amperex Technology Co. Ltd (CATL) is expected to begin operations by the end of 2026 with an initial capacity of 6.9 gigawatt hours, an Indonesian government official said on Sunday.
The facility, located in West Java, forms part of a $6 billion agreement signed in 2022 that also includes Indonesian state miner Aneka Tambang and other consortium members. The broader project spans the entire battery value chain—from nickel mining and processing to electric vehicle (EV) battery production and recycling.
Energy ministry spokeswoman Dwi Anggia said the plant’s output will be supplied to both domestic and international markets and could be expanded to support annual production of up to 15 GWh in EV batteries.
Speaking at the project’s groundbreaking ceremony, Energy Minister Bahlil Lahadalia added that the plant may also be adapted to manufacture energy storage batteries for solar power. “With the battery for solar panels, the total production capacity of this plant could reach up to 40 GWh,” he said, noting that discussions with the project’s owners are ongoing.
While the battery production facility will be built in West Java, supporting projects including nickel processing will be located in North Maluku, an eastern Indonesian province rich in nickel—an essential component in lithium-ion batteries.
Indonesia, home to the world’s largest nickel reserves, has set an ambitious target to produce around 600,000 EVs by 2030, a dramatic increase from the roughly 45,000 units sold last year.