Indonesia is set to commence the construction of a fully integrated electric vehicle (EV) battery project in East Halmahera, North Maluku. This development represents a significant milestone in the country’s continuous efforts to reduce greenhouse gas emissions and promote global environmental goals. 

The initiative is supported by China’s Contemporary Amperex Technology Co. Limited (CATL), one of the world’s major EV battery producers.

Bahlil Lahadalia, Indonesia’s Minister of Energy and Mineral Resources, said that the plant will be the world’s first in terms of scale and integration. It will include mining, smelting, high-pressure acid leaching (HPAL), and the manufacturing of battery precursors and cathodes on a single project site. The entire investment value is estimated to be around USD 6 billion.

Lahadalia noted that this integrated method is projected to drastically cut the country’s EV battery production costs. The project is part of a larger national strategy, including 18 downstream industrial initiatives worth around USD 45 billion. These include investments in nickel and bauxite processing, oil refining, energy storage, coal gasification, as well as fisheries, agriculture, and forestry. With this strategic investment, Indonesia hopes to establish itself as a major global hub for EV battery manufacture.