Jakarta, CNBC Indonesia - The Ministry of Investment and Downstream\nIndustries, also known as the Investment Coordinating Board (BKPM), has\nrevealed that Chinese electric vehicle company Contemporary Amperex\nTechnology Co Ltd (CATL) is reassessing the investment value and\nproduction capacity of its EV battery supply chain project in\nIndonesia.<\/p>\n
Deputy for Promotion at the Ministry of Investment and Downstream\nIndustries, Nurul Ichwan, disclosed that the recalculation of investment\nvalue would continue, noting that the progress of Chinese investment in\nIndonesia appeared promising.<\/p>\n
\u201cThe information we have suggests the figures are promising, so in\nall likelihood this project will continue,\u201d he said at his office in\nJakarta on Wednesday (23\/4\/2025).<\/p>\n
CATL\u2019s initial investment in Indonesia was valued at US$1.2 billion\nfor developing battery cell production with a capacity of 15 Gigawatt\nHours (GWh). However, based on Overseas Direct Investment (ODI)\nApproval, the current investment stands at roughly half that amount,\napproximately 6.9 GWh or US$417 million.<\/p>\n
Despite the recalculation, Nurul Ichwan said the project would\ncontinue to proceed. The reassessment of investment value was driven by\nmarket dynamics, with demand for electric vehicles continuing to\ngrow.<\/p>\n
\u201cIt makes perfect sense to re-analyse the global capacity to which\nCATL can contribute. Upon analysis, if the capacity has not yet reached\nthat level, then a lower capacity is allocated. Since it was reduced\nfrom its original level to half, this naturally requires recalculation,\u201d\nhe explained.<\/p>\n
Previously, Indonesia Battery Corporation (IBC) disclosed that the\ninvestment disbursed by CATL for its battery cell project in Indonesia\namounted to only half of the promised US$1.2 billion investment\nvalue.<\/p>\n
\u201cHowever, based on the ODI Approval we have received from them, it\ncurrently stands at only half \u2014 approximately 6.9 GWh or US$417\nmillion,\u201d said IBC President Director Toto Nugroho during a working\nmeeting with House of Representatives Commission XII on Monday\n(17\/2\/2025).<\/p>\n
IBC was continuing communications and negotiations to find a solution\nregarding the discrepancy in CATL\u2019s investment amount.<\/p>\n
\u201cThere is one matter we need to report: the long stop date \u2014 the\ndeadline by which our agreement must be finalised \u2014 is 28 February,\nwhich is very soon. We require numerous documents from them to obtain\ncertainty regarding the investment,\u201d Toto explained.<\/p>\n
IBC has also requested certainty on an off-take agreement from CATL.\nThe company was also expected to submit a draft Bankable Feasibility\nStudy by 21 January 2025.<\/p>\n
\u201cHowever, several details regarding those documents are still very\nmuch needed. In broad terms, that is what we can report regarding the\nbattery cell project. The recycling component will be discussed\nseparately, as that process can only commence in 2028,\u201d he\nconcluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/catl-recalculating-investment-value-and-production-capacity-for-indonesian-ev-battery-project-1771232735", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }