Indonesia begins $5.9b EV battery project despite environment fears

Indonesia broke ground Sunday on a $5.9 billion megaproject for EV battery production backed by Chinese giant CATL, despite NGOs raising concerns over a lack of environmental guarantees.

- 

Indonesia is the world’s largest nickel producer and it is trying to capitalise on its vast reserves, with a 2020 export ban spurring a domestic industrial boom of the key metal used in EV batteries and stainless steel.

The EV battery project will include a $4.7 billion investment on the eastern island of Halmahera and a $1.2 billion investment in West Java, energy minister Bahlil Lahadalia said in a speech alongside President Prabowo Subianto.

“According to my calculation, it won't take long, in probably between five to six years we will be able to reach energy self-sufficiency,” Prabowo said at a groundbreaking ceremony in Karawang, West Java.

The project will include a $4.7b investment on the eastern island of Halmahera and a $1.2b investment in West Java: Energy minister

Bahlil said the Halmahera complex will focus on mining, smelting and production of cathodes which are a key component in rechargeable batteries.