According to a report by EEWorld on December 16, Septian Hario Seto, Indonesia's Deputy Minister of Maritime Affairs and Investment, stated that CATL plans to invest $5 billion in Indonesia to build a lithium battery plant, which is scheduled to begin production in 2024.
It has been learned that CATL has signed an agreement with Indonesian state-owned mining company PT Aneka Tambang, requiring CATL to ensure that 60% of its nickel is processed into batteries in Indonesia.
Currently, most electric vehicles primarily use nickel-cobalt-manganese ternary lithium batteries. The NCM811 type nickel-cobalt-manganese ternary lithium battery is a key product of CATL (Contemporary Amperex Technology Co., Limited). The "811" designation refers to the nickel-cobalt-manganese ratio of 8:1:1, with nickel being the most abundant component. Indonesia is the world's largest producer and exporter of nickel, with nickel ore reserves of approximately 1.3 billion tons, of which 600 million tons have been proven. These reserves are mainly distributed in the Maluku Islands, South Sulawesi Province, East Kalimantan Province, and Papua Island.
Indonesian President Joko Widodo previously stated publicly: "We have a grand plan to make Indonesia the world's largest lithium battery manufacturer because we have the world's largest nickel reserves."
Despite having the world's largest nickel reserves, Indonesia lacks a complete nickel supply chain. In order to develop its domestic industry and become a global production base for lithium-ion battery vehicles, Indonesia needs to establish a complete nickel ore supply chain, including related chemical plants and battery manufacturing. This has attracted the attention of several leading international battery companies.
Besides CATL, Tesla also intends to build a battery factory in Indonesia. According to Reuters, Tesla will send a delegation to Indonesia in January 2021. Tesla CEO Elon Musk has stated his hope for long-term cooperation with Indonesia to efficiently mine nickel in an environmentally friendly manner. LG Chem is also considering investing $9.8 billion to build a battery factory in Indonesia that integrates a smelter.
