CATL Battery Factory in Karawang Ready to Be Inaugurated by Prabowo

Waiting for the President's Schedule

Minister of Energy and Mineral Resources Bahlil Lahadalia confirmed that the electric vehicle battery ecosystem factory in Karawang has been fully completed and is ready to be inaugurated. "It is ready to be inaugurated. We are just waiting for the right time from the President. The factory is finished," Bahlil said at the Presidential Palace Complex, Jakarta, Monday (19/10/2026).

The facility was built through a partnership between China's CATL and an Indonesian state-owned enterprise, with the groundbreaking ceremony led by President Prabowo Subianto about a year earlier. Ministry of Energy and Mineral Resources Secretary-General Ahmad Erani Yustika confirmed that the battery cell plant developed by PT CATIB has been operational — the commissioning and gradual operation phase has been underway since August 2026.

US$6 Billion Dragon Project

PT CATIB was established as a joint venture between Indonesia Battery Corporation (IBC) and Ningbo Contemporary Brunp Lygend Co. Ltd. (CBL) — a consortium of Contemporary Amperex Technology Co. Limited (CATL), Brunp, and Lygend. The investment value of the project, dubbed the Dragon Project, is estimated at US$6 billion, or approximately Rp98.58 trillion.

The production facility stands in the Artha Industrial Hills (AIH) area, Karawang Regency, on a 43-hectare plot of land, encompassing a module & pack plant as well as a cell plant. "CATIB's capacity in this first phase is 6.9 GWh and we will soon expand it to at least 15 GWh," said Aditya Farhan Arif, President Director of IBC. The conversion of 15 GWh is equivalent to batteries for approximately 250 thousand electric vehicles.

The product lineup includes battery cells, modules, packs, and Battery Energy Storage System (BESS). The President Director of IBC also ensured that the market is ready to absorb it: buyers are already in place and trial production is underway at the factory.

Peak of Nickel Downstreaming

The inauguration of the Karawang plant will make it the second battery ecosystem factory in Indonesia. The first facility involved LG and was built when Bahlil was still serving as Minister of Investment. CATIB's presence marks a gradual shift in Indonesia's nickel value chain: from ore smelting and intermediate products such as ferronickel and nickel matte, toward battery cell assembly, which carries far greater added value.

This momentum aligns with the bright outlook for downstream trade. Bloomberg Technoz (21/10/2026) reports that Indonesia's nickel and lithium battery component exports in 2026 are projected to surpass Rp899 trillion, while InvestorTrust (19/10/2026) notes that global nickel demand is projected to rise 21.39 percent.

For international readers, the message is clear: Indonesia is no longer merely exporting raw materials. With two battery ecosystem plants and an integrated supply chain from mine to cell, Indonesia is positioning itself as one of the world's electric vehicle battery manufacturing hubs.