On Tuesday, in a statement Indonesia’s deputy minister at the coordinating ministry of maritime and investment affairs said, China’s Contemporary Amperex Technology (CATL) plans on investing $5 billion in a lithium battery plant in the country.

The plant is scheduled to commence operations in 2024, said Indonesia’s deputy minister, Septian Hario Seto during a virtual briefing.

“The target is that they (CATL) will invest around $5 billion… and the first production of batteries can be done in 2024,” said Septian.

He said CATL has signed an agreement with Indonesian state miner PT Aneka Tambang requiring CATL to ensure 60% of nickel be processed into batteries in Indonesia.

He went on to add, “We don’t want them to get our nickel but then process it abroad”.

CATL did not immediately respond to requests for comments.

The development comes in the wake of Indonesia stating it wants to become a global hub for producing and exporting electric vehicles (EVs).

Earlier this year in June, Indonesia’s Investment Coordinating Board had said, LG Chem was weighing options which includes investing up to $9.8 billion in an electric vehicle battery factory integrated with a smelter.

Last week, the Indonesian government stated Tesla is scheduled to send a delegation to the country next month to discuss potential investment in a supply chain for its electric vehicles.

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