Jakarta. Indonesia plans to break ground on a major integrated battery manufacturing project led by China’s Zhejiang Huayou Cobalt and EVE Energy in the first half of 2026, the government said, underscoring its determination to build a domestic electric vehicle (EV) and energy storage supply chain after setbacks to earlier plans.

Energy and Mineral Resources Minister Bahlil Lahadalia said the project would proceed following the signing of a framework agreement between Huayou and EVE Energy and Indonesian partners Aneka Tambang (Antam), Indonesia Battery Corporation (IBC), and Daaz Bara Lestari.

“God willing, we will carry out the groundbreaking this year. In line with President Prabowo Subianto’s direction, we are aiming for the first semester,” Bahlil said on Friday, according to Antara.

The Huayou–EVE project is part of Indonesia’s so-called “Grand Package” battery initiative, initially developed with South Korea’s LG Energy Solution. LG completed the first 10 gigawatt-hours (GWh) of capacity before exiting the project in early 2025. Under the revised plan, Huayou will develop the remaining 20 GWh, bringing total planned capacity to 30 GWh.

The project will be split across multiple locations in line with the battery value chain. Upstream facilities — including nickel smelting, high-pressure acid leaching (HPAL), and the production of precursor and cathode materials — will be located in East Halmahera, North Maluku, close to nickel mining sites. Battery cell manufacturing will be developed separately in West Java.

Bahlil said the batteries would not be produced solely for electric vehicles. Part of the output is designed for battery energy storage systems to support Indonesia’s planned 100-gigawatt solar power program, a flagship initiative under President Prabowo.

“These batteries will be made in Indonesia, not only for vehicles but also for solar power storage,” Bahlil said. “This is a direct response to the 100-gigawatt solar program, including rural electrification.”

Dragon and Titan Projects
Indonesia’s battery strategy is structured around two large-scale projects designed to cover the entire value chain — from nickel mining and high-pressure acid leaching (HPAL) smelters to precursor and cathode plants, battery cells, and recycling.

The first, known as the Dragon project, is being developed by a consortium led by China’s Contemporary Amperex Technology Co. Ltd. (CATL) in partnership with Antam and IBC. That project centers on a $6 billion EV battery manufacturing plant in Karawang, West Java, where President Prabowo Subianto officiated the groundbreaking in June 2025. The facility is designed to have a capacity of about 15 gigawatt-hours (GWh) and is expected to begin operations by 2028, with commissioning targeted for the first half of 2026.

The second is the $9.8 billion Titan project, now led by Zhejiang Huayou Cobalt and EVE Energy. Titan is a continuation of the earlier Omega project, an integrated battery initiative in Karawang developed by Hyundai LG Industry, a joint venture between Hyundai Motor Group and LG Energy Solution. LG had invested about $1.2 billion in the project, but the Indonesian government later opted not to include the company in the expanded Titan phase, citing slow progress during a multi-year feasibility study. Huayou subsequently stepped in to take over the remaining scope of work, estimated at roughly $8 billion.

Huayou’s investments in Indonesia are more concentrated on the upstream and midstream segments of the battery supply chain. In addition to its partnership with EVE Energy, Huayou operates nickel processing and refining facilities, including HPAL projects in Morowali, Central Sulawesi, through its Indonesian unit, Huayou Nickel Cobalt. The company is also partnering with Antam and IBC under a separate consortium, with a standalone groundbreaking schedule.

Huayou's Karawang project boasts an annual production capacity of 10 gigawatt/hour (GWh) battery cells -- enough to power 150,000 EVs. However, there are plans for a second-phase development to double its production capacity to 20 GWh. The next phase of development is expected to take up $2 billion in investment. 

Huayou’s investments in Indonesia are largely concentrated in the upstream and midstream segments of the battery supply chain. In addition to its partnership with EVE Energy, the company operates nickel processing and refining facilities — including high-pressure acid leaching (HPAL) projects in Morowali, Central Sulawesi — through its Indonesian unit, Huayou Nickel Cobalt.