Indonesia says China's CATL plans to invest $5 billion in lithium battery plant1 min read . Updated: 15 Dec 2020, 03:17 PM IST
China's CATL plans to invest $5 billion in a lithium battery plant in Indonesia and the production is planned to begin by 2024.
- Indonesia aims at becoming a global hub for producing as well as exporting electric vehicles (EVs).
On 15th Dec, Tuesday, at the coordinating ministry of maritime and investment affairs, the deputy minister of Indonesia said, "China's Contemporary Amperex Technology (CATL) is planning to invest $5 billion in a lithium battery plant in Indonesia." The production by the plant will start in 2024.
The primary target is that CATL will invest around $5 billion in Indonesia, and the first production of batteries can be done in 2024.
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The minister said, "CATL has signed an agreement with Indonesian state miner PT Aneka Tambang which requires CATL to ensure 60% of nickel be processed into batteries in Indonesia. "We don't want them to get out nickel but then process it abroad", he said.
(Also read | World's top EV battery maker LG Chem wins approval to split business)
Indonesia aims to start processing the rich supplies of nickel laterite ore for the use in lithium batteries as part of a bid to eventually become a global hub for producing and exporting electric vehicles (EVs).
Indonesia's Investment Coordinating Board said in June that LG Chem was considering a $9.8 billion investment in an electric vehicle battery factory integrated with a smelter.
Last week, the Indonesian government said US automaker Tesla will send a delegation to Indonesia next month to discuss potential investment in a supply chain for its electric vehicles.
This story has been published from a wire agency feed without modifications to the text.