The project is expected to be one of the key steps towards turning Indonesia into a leading hub for the electric vehicle industry in Southeast Asia.
The construction is being carried out as part of a joint venture between state-owned mining company Aneka Tambang (Antam), the Indonesia Battery Corporation (IBC), and a Chinese consortium led by Contemporary Amperex Technology Co. Limited (CATL), Brunp Recycling and Lygend Resources.
The ceremony to launch the construction was led by Indonesian President Prabowo Subianto.
The production cluster will be located on an area of 3,000 hectares and will create up to 8,000 jobs. The project also plans to implement 18 related infrastructure facilities, including the construction of a universal seaport.
Commercial operation of the battery plant is scheduled to be launched in late 2026.
Earlier Trump authorized a 90-day tariff pause for all countries except for China and reduced the reciprocal tariffs to 10% amid ongoing trade talks with more than 75 countries. The US president also hiked tariffs on Chinese goods, with the tariff rate reaching 145%.