The project is being initiated by Indonesia Battery Corp (IBC), a holding company consisting of four state-owned enterprises and a consortium led by South Korea’s LG and Hyundai Group in an initial investment worth US$1.2 billion. The total investment for the IBC-LG project is estimated to reach US$9.8 billion and employ 1,000 workers.
Furthermore, a Chinese consortium, which includes China’s Contemporary Amperex Technology (CATL), will invest US$5 billion in a lithium battery plant in Indonesia, with production starting in 2024. Both CATL and LG supply the batteries for Tesla’s made-in-China models.
Indonesia wants to increase production to reach a battery capacity of 140 GWh by 2030, from which 50 GWh will be allocated for export. The remainder will be used for Indonesia’s domestic electric vehicle industry, mainly for motorbikes rather than cars.
With Indonesia looking to boost investment in its EV battery sector to US$33 billion by 2033, the country presents ample opportunities for foreign EV manufacturers.