CATL seizes early market opportunities with the groundbreaking of its Indonesian plant.
On June 29, Contemporary Amperex Technology Co., Limited (CATL) held a groundbreaking ceremony for its overseas battery manufacturing facility in Indonesia. The plant is expected to begin operations by the end of 2026, with an initial production capacity of 6.9 GWh.
This battery factory is a joint investment by CATL, Indonesia’s state-owned enterprise Indonesia Battery Corporation (IBC), and mining company PT Aneka Tambang (ANTAM), with a total investment of nearly USD 6 billion. The project is located in Karawang, West Java Province, and upon completion, it will become the largest battery production project in Southeast Asia to date.
According to Indonesian Minister of Energy and Mineral Resources, Bahlil Lahadalia, who spoke at the ceremony on Sunday, the facility is expected to have a total battery production capacity of 15 GWh, enough to power approximately 250,000 to 300,000 new energy vehicles (NEVs).Production is scheduled to begin in 2026.
Indonesian President Prabowo Subianto remarked at the ceremony, “This demonstrates our commitment to cooperation with our Chinese partners. It is an extraordinary breakthrough.”
Founded in 2011, CATL is a Chinese battery manufacturer and technology company specializing in lithium-ion batteries for electric vehicles (EVs), energy storage systems (ESS), and battery management systems (BMS). It supplies batteries to 16 of the world’s largest automakers. As of 2024, CATL has maintained the world’s largest market share in EV power batteries for eight consecutive years, making it the global leader in EV battery supply.
Indonesia, rich in natural resources such as nickel, tin, cobalt, copper, and bauxite, is leveraging its mineral wealth to develop a comprehensive new energy vehicle industrial chain. The government is actively working to establish the country as a regional hub for EV battery manufacturing. In recent years, companies like CATL and Foxconn have partnered with Indonesian firms to build integrated supply chains for EVs and power batteries, covering nickel mining and smelting, battery material production, and battery recycling.
Indonesia has become a key battleground in the overseas expansion strategies of Chinese automakers. Following the rapid growth of the local EV market, brands such as BYD, GAC Aion, SAIC Maxus, Geely, and XPeng have quickly entered the Indonesian market. Among them, BYD leads in sales, with 15,429 units sold in 2024, followed by Wuling and Chery.
At the same time, Indonesia’s Ministry of Industry has announced tax incentives for several automakers, including BYD and GAC Aion, to support their plans to establish local manufacturing bases. Wuling has already completed construction of its EV production facility in Indonesia, and XPeng is set to begin local manufacturing in July this year. With an open market and supportive policies, the Indonesian government is not only boosting its own economic growth but also accelerating the localization of Chinese automakers’ overseas production, further enhancing global recognition of “Made in China” innovation.
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