PT Industri Battery Indonesia And CBL International Establish Joint Venture Companies For Battery Cell Manufacturing

JAKARTA - Today, Wednesday, October 16, PT Industri Battery Indonesia or Industry Battery Corporation (IBC) as an investment holding company engaged in the field of new energy materials through the development of an integrated electric vehicle battery and battery storage system ecosystem to sign the Interim Agreement and the Deed for the Establishment of a Battery Cell Manufacturing Company with CBL International Development Pte. Ltd. at the Ministry of State-Owned Enterprises (BUMN) of the Republic of Indonesia.

The signing was witnessed directly by the Deputy Minister of SOEs, Kartika Wirjoatmodjo. This collaboration is an IBC's strategic effort to encourage nickel downstream and integrated battery industry development programs and in order to develop electric vehicle battery supply chains from upstream to downstream.

This initiative aims to strengthen Indonesia's position as a battery key player in the global market. In this collaboration, IBC is involved in the value chain in the downstream segment, including 1) Material Battery Manufacturing, 2) Battery Cell Manufacturing, and 3) Battery Recycle.

"We report that our JV 5, the Battery Cell Manufacturing Project, has now entered its initial stage and is located in Karawang, West Java. Through joint efforts, IBC and CBL want to develop this project in stages with the aim of investing a total of US$1.18 billion and achieving a total production capacity of 15 GWh per year, which will be sufficient to meet domestic and global demand," said IBC President Director Toto Nugroho.

Gordon An, General Manager of International Business Manufacturing Operations of CATL, said that the battery factory project is a key component in building chains and ecosystems for the electric vehicle and electric battery industry in Indonesia.

"We are willing to actively take advantage of our advantages in technological and manufacturing innovation, and hope to cooperate with our partners in Indonesia to support the development of electrification efforts in Indonesia," he said.

Meanwhile, the Deputy Minister of State-Owned Enterprises of the Republic of Indonesia, Kartika Wirjoatmodjo, saw the role of IBC and other shareholders.

"IBC can be a major player who is able to invite investors and partners to enter the market/ battery industry, which is more advanced than any other global player in the battery industry. We must also be fast, agile and adaptive in executing this project. We must observe technological changes that arise in the electric vehicle sector so that we can become more competitive. The hope is that by 2027 we will be able to see the results of the JV which were signed today, namely battery cells." Kartika explained.

By considering the potential for Indonesia's nickel reserves, Project Dragon is expected to be able to strengthen Indonesia's position in the global supply chain of electric vehicle batteries. This project is also expected to be able to have a significant economic impact on Indonesia, such as creating jobs, attracting foreign investment and increasing the capacity of the renewable energy industry in Indonesia.

This project will undoubtedly support Indonesia's commitment to achieving the Net Zero Emissions target by 2060. Through multi-party collaboration, including government, BUMN, and international partners, Indonesia is moving towards an independent future in sustainable energy.