Indonesia is powering up, and China's Contemporary Amperex Technology intends to provide the storage capacity.
CATL, already the world's largest EV battery maker, is planning to expand its operations into Indonesia. Activity will focus on the entire pack lifecycle, "from mining to recycling," per Battery Technology.
The project is the largest of its kind in Southeast Asia. At the launch ceremony, Indonesian President Prabowo Subianto noted the project's importance in the region's drive for sustainable energy.
The shift to cleaner energy is headlined by a 186% growth in electric vehicle sales, according to the publication.
The CATL effort is being undertaken with subsidiaries and partner companies in the region, bolstered by a $6 billion investment. The project area will include around 4,942 acres at several sites and create more than 40,000 direct and indirect jobs.
The Karawang battery plant is envisioned as a juggernaut with the ability to churn out packs made partly from recycled materials, according to a statement.
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"A standout feature of the Indonesia Battery Integration Project is the establishment of the country's first renewable energy circular system … utilizing cutting-edge technologies to achieve ultra-low energy consumption and high-value material regeneration," Battery Technology's Maria Guerra wrote.
The result will be 142,000 tons of nickel production, 30,000 tons of cathode materials, and 20,000 tons of processed recycled packs. More than 95% of key metals are expected to be recovered, per BT.
The effort will help Indonesia meet its cleaner energy goals, Subianto said. But the region still has a lot of progress to make. While the EV growth is impressive, BT noted that polluting gas-guzzlers still dominate the market, while EVs account for about 7.3% of total car sales.
CATL's investment represents a giant lift for the work. But the company's leaders aren't the only ones with Indonesian aspirations. Australia is also working with the country to secure a supply chain of precious resources needed for the renewables shift. That partnership was touted in 2023 as a boon for the U.S. as an alternative to China-dominated metal and mineral markets.
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Sodium-based batteries and other chemistry types are also being developed in Quebec and elsewhere. The work orders could challenge Far East supply chain dominance.
While the market implications are great, the competition is also happening in a sector that produces far less heat-trapping air pollution than dirty fuels.
Each EV that replaces a gas-burning car prevents thousands of pounds of planet-warming tailpipe gases, for example. That's true stateside, even in regions where coal, gas, and oil create most of the electricity to charge them, according to the U.S. Department of Energy.
Stateside, drivers can leverage federal tax breaks worth up to $7,500 through Sept. 30 to buy a new EV after President Donald Trump's spending bill heralded the early end of the incentive.
Many states still offer their own perks for switching, and the move can save drivers around $1,500 annually on gas and service expenses.
Adding rooftop solar panels to the game plan provides free, clean power to charge the rides. A battery backup can even store the electricity for later use.
Like the EV rebates, solar incentives are also set to sunset early. EnergySage can help you secure the savings in time, find an installer, and shave up to $10,000 off the expense.
In Indonesia, leaders expect the CATL project to make the region relevant in a cleaner economy.
It could position the nation "as a leader in the global battery industry," as Guerra wrote.
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