Karawang. A new battery manufacturing plant, whose construction officially began on Sunday, will have the capacity to supply batteries for up to 300,000 electric vehicles (EVs) per year, Energy and Mineral Resources Minister Bahlil Lahadalia said at the groundbreaking ceremony in Karawang, West Java.

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.

Bahlil accompanied President Prabowo Subianto, who officially launched the project, which carries a total investment value of $5.9 billion.

Once operational, the plant will have a production capacity of 15 gigawatt-hours (GWh).

“If converted into EV batteries, this capacity can supply between 250,000 and 300,000 electric vehicles per year,” Bahlil said.

In addition to producing EV batteries, the facility will also serve as a battery energy storage system (BESS), capable of storing electricity generated from solar power, he added.

The minister noted that boosting domestic battery production is expected to significantly accelerate EV manufacturing in Indonesia and reduce the country’s fuel imports by approximately 300 million liters per year.

The Karawang plant will be fully integrated with five supporting facilities and upstream mining operations located in East Halmahera, North Maluku, in line with the government’s goal of developing a complete EV battery supply chain -- from mining to manufacturing.

Situated on a 3,000-hectare site, the project is expected to generate up to 8,000 jobs once operational. It will also support the development of 18 key infrastructure projects, including the construction of a multipurpose port, further enhancing the region’s industrial ecosystem.