Indonesia Forges Major EV Battery Partnership with China
Indonesia has officially announced a significant US$7-8 billion partnership with a Chinese consortium, led by Zhejiang Huayou Cobalt, to develop a comprehensive electric vehicle (EV) battery ecosystem named 'Titan'. The announcement was made on January 30, 2026, by Indonesian Minister of Energy and Mineral Resources, Bakhril Rahadalya. This strategic collaboration underscores Indonesia's ambition to become a pivotal player in the global EV supply chain, leveraging its abundant nickel resources.
'Titan' Project Aims for Integrated Supply Chain
The 'Titan' project is designed to establish a fully integrated EV battery supply chain within Indonesia, encompassing all stages from raw material processing to the production of finished battery cells. This extensive ecosystem will include:
- Smelters for raw material processing.
- Cathode precursor production facilities.
- High-pressure acid leach (HPAL) processing.
- Battery assembly and manufacturing plants.
The project is slated for groundbreaking in the first half of 2026. Production capacity is projected to reach up to 20 gigawatt hours (GWh), with some reports indicating this is the remaining capacity after an initial phase.
Key Players and Strategic Locations
The Chinese consortium is primarily led by Zhejiang Huayou Cobalt, with other notable participants in the broader HYD joint venture including EVE Energy Co., Ltd. and PT Daaz Bara Lestari Tbk. On the Indonesian side, state-owned entities such as Antam (PT Aneka Tambang) and PT Indonesia Battery Corporation (IBC) are key partners. The Indonesian government is expected to hold a majority stake, potentially between 60% and 70%, in the upstream segment of the project.
The 'Titan' ecosystem will be geographically distributed to optimize resource utilization and manufacturing efficiency:
- Battery assembly and manufacturing operations will be situated in West Java.
- Upstream processing facilities, including smelters and HPAL plants, will be located in East Halmahera, North Maluku, strategically close to Indonesia's rich nickel and cobalt mines.
Transition from Previous Partnership
This partnership with the Chinese consortium follows the withdrawal of a South Korean consortium, led by LG Energy Solution (LGES), from the project in April 2025. LGES cited 'market conditions and investment environment' as reasons for its departure. Following this, Zhejiang Huayou Cobalt stepped in as the new strategic investor, ensuring the continuity of Indonesia's ambitious EV battery development plans.
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