China's EV battery-maker CATL starts work on $7.5b nickel project in Indonesia

Project spread across two provinces will span the entire EV battery value chain

- Wahyudi Soeriaatmadja

KARAWANG, West Java - The world's largest electric vehicle (EV) battery manufacturer, CATL, has officially kicked off construction work on a US$5.9 billion (S$7.5 billion) integrated nickel project spread across two provinces in Indonesia - North Maluku and West Java.

The so-called Project Dragon will span the entire EV battery value chain.

The ground-breaking ceremony was witnessed by Indonesian President Prabowo Subianto at the Karawang site in West Java.

"The key to a country's development is its ability to process its natural resources into high-value material that would in turn be used to boost people's welfare," Mr Prabowo said in a speech to mark the event.

Energy and Mineral Resources Minister Bahlil Lahadalia said at the ceremony: "We also expect they will not only do EV batteries but also solar panel electric storage. We discussed this with them last night. This is what President Prabowo asked for."

A solar panel electric ESS (energy storage system) combines solar panels with battery storage to capture and store excess electricity for later use.

An Energy and Mineral Resources Ministry official told The Straits Times the ESS products from the Karawang plant may supply the solar farm that Indonesia plans to build in Batam, whose electricity would be exported to Singapore.

The event was also attended by CATL co-founder and vice-chairman Li Ping, among others.

The integrated project will consist of the development of a nickel mine; smelters to process nickel ore into cathode and other intermediate products required to make battery cells; and plants to manufacture battery cells and assemble battery packs.