### Indonesia Launches Ambitious $5.9 Billion EV Battery Project Amid Environmental Concerns Indonesia has officially commenced a significant $5.9 billion project aimed at establishing a comprehensive electric vehicle (EV) battery production ecosystem. This initiative, backed by the Chinese battery giant CATL, is part of Indonesia's broader strategy to capitalize on its vast nickel reserves, which are crucial for battery manufacturing. However, the project has sparked considerable controversy, particularly from environmental NGOs that have raised alarms about the potential ecological impacts of such large-scale industrial activities [https://www.thestar.com.my/aseanplus/aseanplus-news/2025/06/30/indonesia-begins-59-bn-ev-battery-project-despite-environment-fears]. ### Project Overview and Structure 1. **Project Launch**: The groundbreaking ceremony was led by Indonesian President Prabowo Subianto, marking the official start of the project on June 30, 2025 [https://asia.nikkei.com/Business/Automobiles/Electric-vehicles/Indonesia-breaks-ground-on-5.9-bn-CATL-backed-battery-venture]. 2. **Investment and Scale**: The project involves an investment of $5.9 billion and will cover an area of 3,023 hectares, integrating various stages of battery production from nickel mining to the manufacturing of cathodes [https://en.vietnamplus.vn/indonesia-launches-59-billion-usd-ev-battery-ecosystem-post321854.vnp]. 3. **Environmental Concerns**: NGOs have expressed significant concerns regarding the environmental safeguards associated with the project, highlighting the potential for ecological degradation [https://www.straitstimes.com/asia/se-asia/environment-fears-over-7-65b-indonesia-ev-battery-project-ngos]. 4. **Strategic Importance**: This initiative is part of Indonesia's national strategic projects aimed at enhancing the country's position in the global EV supply chain, particularly in the context of downstreaming its natural resources [https://www.bloomberg.com/news/articles/2025-06-29/catl-breaks-ground-on-6-billion-indonesia-battery-venture]. ### Supporting Evidence and Data - **Investment Value**: $5.9 billion allocated for the EV battery ecosystem [https://www.straitstimes.com/asia/se-asia/chinas-ev-battery-maker-catl-starts-construction-of-7-5b-nickel-project-in-indonesia]. - **Area Coverage**: The project spans 3,023 hectares, indicating a substantial physical footprint [https://en.vietnamplus.vn/indonesia-launches-59-billion-usd-ev-battery-ecosystem-post321854.vnp]. - **Environmental Impact**: Concerns raised by NGOs focus on the potential for significant environmental harm due to nickel mining and battery production processes [https://www.straitstimes.com/asia/se-asia/environment-fears-over-7-65b-indonesia-ev-battery-project-ngos]. ### Conclusion and Implications In summary, Indonesia's $5.9 billion EV battery project represents a pivotal move towards establishing a robust battery production ecosystem, driven by the country's rich nickel resources and strategic partnerships with major players like CATL. However, the project is not without its challenges, particularly regarding environmental sustainability. 1. **Strategic Development**: The project is crucial for Indonesia's economic growth and its role in the global EV market. 2. **Environmental Scrutiny**: Ongoing concerns from NGOs highlight the need for stringent environmental regulations to mitigate potential impacts. 3. **Future Prospects**: The success of this initiative could set a precedent for similar projects in the region, balancing economic development with environmental stewardship [https://www.thestar.com.my/aseanplus/aseanplus-news/2025/06/30/indonesia-begins-59-bn-ev-battery-project-despite-environment-fears].