China’s largest battery producer Contemporary Amperex Technology (CATL) is planning to invest $5bn to build a lithium battery plant in Indonesia to cater to the electric vehicles (EVs) sector, as per media reports citing the Indonesian authorities.
The company will begin production of the battery packs in 2024.
Indonesia has rich resources of nickel laterite ore that has attracted CATL to invest in the plant. The company has signed an agreement with state miner PT Aneka Tambang requiring CATL to ensure 60pc of nickel mined in the country will be processed into batteries in Indonesia.
The plant announcement comes after Indonesian President Joko Widodo personally invited Tesla to build an electric vehicle assembling facility in his country. Indonesia aims to eventually become a hub for producing and exporting electric vehicles globally.