CATL Reportedly Seeking US$1 Billion Loan to Fund Battery Cell Factory in Karawang
JAKARTA. Chinese electric vehicle (EV) battery producer Contemporary Amperex Technology Co. Ltd. (CATL) is reportedly seeking approximately US$1 billion, equivalent to Rp 16.4 trillion, in funding to support the construction of a battery cell factory in Karawang, West Java.
Citing a Bloomberg report on Tuesday (6/5), the loan could potentially carry a tenor of five to seven years. CATL is currently in negotiations with a number of prospective lenders, and the funding structure may change depending on the outcome of discussions.
CATL entered Indonesia through its subsidiary, Ningbo Contemporary Brunp Legend Co. Ltd. (CBL), which established a strategic partnership with PT Industri Baterai Indonesia (IBC) on 16 October 2024. This collaboration gave rise to a project named Dragon, focused on developing an integrated EV battery industry.
IBC itself is a joint venture owned by state-owned enterprises — namely PT Aneka Tambang Tbk (Antam), PT Inalum, PT Pertamina New & Renewable Energy, and PT PLN — each holding a 25% stake.
Initially, CATL announced an investment value for the Dragon project of US$1.18 billion with a production capacity of 15 gigawatt hours (GWh) per year. However, this figure was subsequently revised following Outward Direct Investment (ODI) approval from the Chinese government.
IBC President Director Toto Nugroho explained that the ODI approval granted covered only half of the original plan. "Approximately 6.8 GWh with an investment value of US$417 million," Toto stated during a meeting with the House of Representatives on Monday (17/2).
This adjustment was also confirmed by Deputy for Investment Promotion at the Ministry of Investment/BKPM, Nurul Ichwan. According to him, the reduction was made because global demand for EVs had not met expectations. "When analysed, the initial capacity was not yet needed, so an adjustment was made," Nurul said in a statement in Jakarta on Wednesday (23/4).
Consequently, the Dragon project is now proceeding with an investment value of US$417 million and a production capacity of 6.9 GWh.
CATL is recorded as the world's largest EV battery producer, holding a global market share of 38.2% for January–February 2025, according to data from South Korea's SNE Research. As of 30 September 2024, CATL had 13 battery production sites globally, including a factory in Thuringia, Germany, which has commenced mass production, and a factory construction project in Hungary still underway.
In December last year, CATL also announced the establishment of a joint venture with Stellantis to build a lithium iron phosphate (LFP) battery factory in Spain, with a planned total investment of US$4.26 billion. This factory will become CATL's third facility in Europe after Germany and Hungary.
Citing a Bloomberg report on Tuesday (6/5), the loan could potentially carry a tenor of five to seven years. CATL is currently in negotiations with a number of prospective lenders, and the funding structure may change depending on the outcome of discussions.
CATL entered Indonesia through its subsidiary, Ningbo Contemporary Brunp Legend Co. Ltd. (CBL), which established a strategic partnership with PT Industri Baterai Indonesia (IBC) on 16 October 2024. This collaboration gave rise to a project named Dragon, focused on developing an integrated EV battery industry.
IBC itself is a joint venture owned by state-owned enterprises — namely PT Aneka Tambang Tbk (Antam), PT Inalum, PT Pertamina New & Renewable Energy, and PT PLN — each holding a 25% stake.
Initially, CATL announced an investment value for the Dragon project of US$1.18 billion with a production capacity of 15 gigawatt hours (GWh) per year. However, this figure was subsequently revised following Outward Direct Investment (ODI) approval from the Chinese government.
IBC President Director Toto Nugroho explained that the ODI approval granted covered only half of the original plan. "Approximately 6.8 GWh with an investment value of US$417 million," Toto stated during a meeting with the House of Representatives on Monday (17/2).
This adjustment was also confirmed by Deputy for Investment Promotion at the Ministry of Investment/BKPM, Nurul Ichwan. According to him, the reduction was made because global demand for EVs had not met expectations. "When analysed, the initial capacity was not yet needed, so an adjustment was made," Nurul said in a statement in Jakarta on Wednesday (23/4).
Consequently, the Dragon project is now proceeding with an investment value of US$417 million and a production capacity of 6.9 GWh.
CATL is recorded as the world's largest EV battery producer, holding a global market share of 38.2% for January–February 2025, according to data from South Korea's SNE Research. As of 30 September 2024, CATL had 13 battery production sites globally, including a factory in Thuringia, Germany, which has commenced mass production, and a factory construction project in Hungary still underway.
In December last year, CATL also announced the establishment of a joint venture with Stellantis to build a lithium iron phosphate (LFP) battery factory in Spain, with a planned total investment of US$4.26 billion. This factory will become CATL's third facility in Europe after Germany and Hungary.