Jakarta. The Indonesian government officially launched construction on a $5.9 billion integrated electric vehicle (EV) battery manufacturing project in Karawang, West Java, on Sunday, marking a major step toward its ambition to become Southeast Asia’s EV hub.

The battery plant in Karawang will be integrated with five supporting facilities and upstream operations in East Halmahera, North Maluku, aligning with the government’s strategy to build a fully integrated EV battery supply chain -- from mining to manufacturing.

The project is a joint venture between Indonesia’s state-owned mining company Aneka Tambang (Antam), the Indonesia Battery Corporation (IBC), and a consortium led by China’s Contemporary Amperex Technology Co. Limited (CATL), along with Brunp Recycling and Lygend Resources.

This flagship industrial initiative was first championed under former President Joko Widodo and is now being carried forward by President Prabowo Subianto, who presided over the groundbreaking ceremony.

“With great pride, I officially launch the construction of this integrated EV battery industry ecosystem, a collaboration between Antam, IBC, and the CBL consortium,” President Prabowo said during the ceremony.

Prabowo was joined by several senior officials, including Energy Minister Bahlil Lahadalia, State-Owned Enterprises Minister Erick Thohir, Industry Minister Agus Gumiwang Kartasasmita, and Housing Minister Maruar Sirait, alongside Cabinet Secretary Teddy Indra Wijaya and regional government leaders. Chinese Ambassador to Indonesia Wang Lutong also attended as a guest of honor.

The Karawang facility is being developed on a 3,000-hectare site and is expected to create up to 8,000 jobs once operational. The project will also drive the development of 18 key infrastructure projects, including a multipurpose port.

The plant is designed with sustainability in mind, combining coal, waste heat recovery, and solar power to reduce its environmental footprint.

The factory’s initial production capacity is targeted at 6.9 gigawatt-hours (GWh) in the first phase, scaling up to 15 GWh in the second phase. Commercial operations are expected to begin by late 2026.

Nickel Mining and Recycling in Halmahera
In parallel, upstream operations are underway in East Halmahera, where Antam and Hong Kong CBL Limited (HK CBL) have established a joint venture called Feni Haltim. This venture will develop a new energy industrial park, featuring a nickel mine and pyrometallurgical smelter with an annual production capacity of 88,000 tons of refined nickel alloy starting in 2027.

Additionally, the Halmahera site will include facilities for producing nickel-cobalt-manganese (NCM) cathode materials and a battery recycling plant, further enhancing Indonesia’s push toward a circular economy in the EV sector.