Indonesia’s US$5.9b battery project sparks environmental concerns
The world’s largest nickel producer is trying to capitalise on its vast reserves, with a 2020 export ban spurring a domestic industrial boom
Indonesia broke ground on Sunday on a US$5.9 billion megaproject for EV battery production backed by Chinese giant CATL, despite NGOs raising concerns over a lack of environmental guarantees.
Indonesia is the world’s largest nickel producer and it is trying to capitalise on its vast reserves, with a 2020 export ban spurring a domestic industrial boom of the key metal used in EV batteries and stainless steel.
The EV battery project will include a US$4.7 billion investment on the eastern island of Halmahera and a US$1.2 billion investment in West Java, Energy Minister Bahlil Lahadalia said in a speech alongside President Prabowo Subianto.
“According to my calculations, it won’t take long; in probably between five to six years we will be able to reach energy self-sufficiency,” Prabowo said at a groundbreaking ceremony in Karawang, West Java.
Bahlil said the Halmahera complex will focus on mining, smelting and production of cathodes, which are a key component in rechargeable batteries.
The West Java complex will focus on battery cell production, the minister said.
The two politicians did not say when the megaproject was slated to be operational, but Indonesian officials have said a CATL plant in Halmahera would open in March of 2026.