CATL Recalculating Investment Value and Production Capacity for Indonesian EV Battery Project
Jakarta, CNBC Indonesia - The Ministry of Investment and Downstream Industries, also known as the Investment Coordinating Board (BKPM), has revealed that Chinese electric vehicle company Contemporary Amperex Technology Co Ltd (CATL) is reassessing the investment value and production capacity of its EV battery supply chain project in Indonesia.
Deputy for Promotion at the Ministry of Investment and Downstream Industries, Nurul Ichwan, disclosed that the recalculation of investment value would continue, noting that the progress of Chinese investment in Indonesia appeared promising.
"The information we have suggests the figures are promising, so in all likelihood this project will continue," he said at his office in Jakarta on Wednesday (23/4/2025).
CATL's initial investment in Indonesia was valued at US$1.2 billion for developing battery cell production with a capacity of 15 Gigawatt Hours (GWh). However, based on Overseas Direct Investment (ODI) Approval, the current investment stands at roughly half that amount, approximately 6.9 GWh or US$417 million.
Despite the recalculation, Nurul Ichwan said the project would continue to proceed. The reassessment of investment value was driven by market dynamics, with demand for electric vehicles continuing to grow.
"It makes perfect sense to re-analyse the global capacity to which CATL can contribute. Upon analysis, if the capacity has not yet reached that level, then a lower capacity is allocated. Since it was reduced from its original level to half, this naturally requires recalculation," he explained.
Previously, Indonesia Battery Corporation (IBC) disclosed that the investment disbursed by CATL for its battery cell project in Indonesia amounted to only half of the promised US$1.2 billion investment value.
"However, based on the ODI Approval we have received from them, it currently stands at only half — approximately 6.9 GWh or US$417 million," said IBC President Director Toto Nugroho during a working meeting with House of Representatives Commission XII on Monday (17/2/2025).
IBC was continuing communications and negotiations to find a solution regarding the discrepancy in CATL's investment amount.
"There is one matter we need to report: the long stop date — the deadline by which our agreement must be finalised — is 28 February, which is very soon. We require numerous documents from them to obtain certainty regarding the investment," Toto explained.
IBC has also requested certainty on an off-take agreement from CATL. The company was also expected to submit a draft Bankable Feasibility Study by 21 January 2025.
"However, several details regarding those documents are still very much needed. In broad terms, that is what we can report regarding the battery cell project. The recycling component will be discussed separately, as that process can only commence in 2028," he concluded.
Deputy for Promotion at the Ministry of Investment and Downstream Industries, Nurul Ichwan, disclosed that the recalculation of investment value would continue, noting that the progress of Chinese investment in Indonesia appeared promising.
"The information we have suggests the figures are promising, so in all likelihood this project will continue," he said at his office in Jakarta on Wednesday (23/4/2025).
CATL's initial investment in Indonesia was valued at US$1.2 billion for developing battery cell production with a capacity of 15 Gigawatt Hours (GWh). However, based on Overseas Direct Investment (ODI) Approval, the current investment stands at roughly half that amount, approximately 6.9 GWh or US$417 million.
Despite the recalculation, Nurul Ichwan said the project would continue to proceed. The reassessment of investment value was driven by market dynamics, with demand for electric vehicles continuing to grow.
"It makes perfect sense to re-analyse the global capacity to which CATL can contribute. Upon analysis, if the capacity has not yet reached that level, then a lower capacity is allocated. Since it was reduced from its original level to half, this naturally requires recalculation," he explained.
Previously, Indonesia Battery Corporation (IBC) disclosed that the investment disbursed by CATL for its battery cell project in Indonesia amounted to only half of the promised US$1.2 billion investment value.
"However, based on the ODI Approval we have received from them, it currently stands at only half — approximately 6.9 GWh or US$417 million," said IBC President Director Toto Nugroho during a working meeting with House of Representatives Commission XII on Monday (17/2/2025).
IBC was continuing communications and negotiations to find a solution regarding the discrepancy in CATL's investment amount.
"There is one matter we need to report: the long stop date — the deadline by which our agreement must be finalised — is 28 February, which is very soon. We require numerous documents from them to obtain certainty regarding the investment," Toto explained.
IBC has also requested certainty on an off-take agreement from CATL. The company was also expected to submit a draft Bankable Feasibility Study by 21 January 2025.
"However, several details regarding those documents are still very much needed. In broad terms, that is what we can report regarding the battery cell project. The recycling component will be discussed separately, as that process can only commence in 2028," he concluded.