Tesla Supplier CATL Invests $5 Billion in Battery Plant in Indonesia

Eva Fox by Eva Fox December 16, 2020

Tesla Supplier CATL Invests $5 Billion in Battery Plant in Indonesia

Tesla's battery supplier, China's Contemporary Amperex Technology (CATL), is investing $5 billion in a lithium battery plant that will go into operation in four years in Indonesia, according to the country's Ministry of Maritime and Investment Coordination.

Deputy minister at the Indonesian Ministry of Maritime and Investment Coordination Septian, Hario Seto, said Tuesday that the company plans to invest $5 billion in a lithium battery plant. The first battery production could start as early as 2024, according to Hindustan Times.

"China's Contemporary Amperex Technology (CATL) is planning to invest $ 5 billion in a lithium battery plant in Indonesia...and the first production of batteries can be done in 2024."

Seto said CATL has signed an agreement with Indonesia's state-owned mining company, PT Aneka Tambang, that CATL must process 60% of its nickel into batteries in Indonesia.

"CATL has signed an agreement with Indonesian state miner PT Aneka Tambang which requires CATL to ensure 60% of nickel be processed into batteries in Indonesia. We don't want them to get out nickel but then process it abroad."

Indonesia intends to begin processing its reserves of nickel laterite ore for use in lithium batteries, making it a global hub for the production and export of electric vehicles, and aims to develop a complete home nickel supply chain. The country is focusing on extracting chemicals from batteries, making batteries, and ultimately making electric vehicles. That is why Indonesia has stopped exporting unprocessed nickel ore, as they wish to support investment in this domestic industry.



The country's government recently announced that Tesla will send a delegation to Indonesia to discuss possible further cooperation in the supply of nickel. The country's government has repeatedly spoken about negotiations with Tesla. Indonesia aims to make its battery supply chain green in seven to eight years by adding renewable energy sources to some smelters. Thus, they will be able to sell environmentally friendly car batteries in the European market by 2030.

© 2020, Eva Fox. All rights reserved.

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