Indonesia to Commission Major Electric Vehicle Battery Plant in 2026

Strategic Investment in EV Ecosystem

Indonesia is poised to launch a significant $6.1 billion (Rp 95 trillion) electric vehicle (EV) battery manufacturing facility in Karawang, West Java, during the first half of 2026. The project, a collaboration between Indonesian state-owned enterprises and Chinese industry leaders, marks a crucial development in the country's nickel downstreaming strategy and EV ecosystem.

Project Background and Partners

The integrated battery factory is being developed through a partnership between Antam and Indonesia Battery Corporation (IBC), a state-owned battery company, alongside a Chinese consortium known as CBL. This consortium comprises major Chinese companies in the battery sector: CATL, Brunp, and Lygend. The project's groundbreaking ceremony was conducted by President Prabowo Subianto in June 2025, signaling strong governmental support for the initiative.

Economic and Industrial Impact

This investment represents a significant milestone in Indonesia's efforts to develop its EV battery industry, leveraging the country's rich nickel resources. The project is expected to create substantial economic opportunities and position Indonesia as a key player in the global EV supply chain. The development is part of Indonesia's broader strategy to enhance its industrial capabilities through downstreaming of natural resources and development of strategic industries.