- Head of Investment Coordinating Board Bahlil Lahadahlia said the company has recently signed the investment agreement and would break ground for the plant in 2021
- Bahlil said that 85 percent of the raw material for the battery comes from Indonesia
As per a report by Jakartaglobe, Contemporary Amperex Technology, or CATL has has decided to invest $5.1 billion to build a manufacturing plant for electric vehicle batteries in Indonesia as per the country’s top investment official. It added that the Head of Investment Coordinating Board Bahlil Lahadahlia said the company has recently signed the investment agreement and would break ground for the plant in 2021.
The report added that CATL did $6.8 billion in sales worldwide. It company supplies batteries to carmakers like Hyundai, Honda, BMW, Tesla, Toyota, Volkswagen, and Volvo. It added that two years back, CATL teamed up with Chinese stainless-steel maker Tsingshan Holding, Chinese battery firm GEM, Japanese trading firm Henwa and Indonesian industrial complex company Indonesia Morowali Industrial Park in a $700 million project to make battery-grade nickel chemicals in Morowali, Central Sulawesi.
Indonesia must be a key player in renewable energy, especially in the electric battery
Bahlil said that 85 percent of the raw material for the battery comes from Indonesia. So Indonesia must be a key player in renewable energy, especially in the electric battery.
The report added that South Korean carmaker Hyundai has been making progress on its electric car projects in Indonesia too. Lee Kang Hyun, the vice president and chief operating officer at Hyundai Motor Asia Pacific, said construction of Hyundai’s electric car plant in the country, which is also the company’s first manufacturing center based in Southeast Asia, has been 65 percent complete.
It added that Lee said during a West Java Investment Summit 2020 press conference in Bandung that Hyundai has started to build a factory in Delta Mas, Cikarang, despite the Covid-19 pandemic, with the full support of the governor and related ministers. Now, it has been 65 percent complete. He added that the the company targeted the factory which costs $1.55 billion to build on 77.6 hectares of land. It would start producing combustion engine cars by the end of 2021 and electric cars in 2022.