China's Contemporary Amperex Technology (CATL) plans to invest $ 5 billion in a lithium battery plant in Indonesia, Indonesia's Deputy Investment Minister Septian Hario Seto said on Tuesday.
The lithium battery plant will begin production in 2024, the Deputy Minister said in a virtual briefing.
He announced that CATL has signed an agreement with Indonesian state-owned mining company PT Aneka Tambang, according to which CATL must process 60% of Indonesia's nickel.
Indonesia intends to begin processing its rich reserves of nickel laterite ore for use in lithium batteries in a bid to ultimately become a global hub for the production and export of electric vehicles.
In June, Indonesia's Investment Coordinating Council announced that LG Chem is considering investing $ 9.8 billion in an EV battery plant integrated with a smelter.
Last week, the Indonesian government announced that American automaker Tesla will send a delegation to Indonesia next month to discuss potential investments in its electric vehicle supply chain.