Indonesia don announce say dem go build one big lithium-ion battery factory wey Chinese company, Contemporary Amperex Technology Co Ltd (CATL), go support. Dis one na new chapter for di global competition for clean energy power.
Di factory go start work before di end of 2026, and e go dey produce battery for electric cars and energy storage systems. Dem plan start with 6.9 gigawatt hours capacity, but e fit expand reach 40 gigawatt hours.
Di battery factory go dey West Java, while di other sub-projects go dey North Maluku, wey get plenty nickel. Indonesia na di country wey get di biggest nickel reserve for di world, and nickel na one important material for lithium-ion batteries.
Di country don set big target to produce about 600,000 electric cars by 2030. Dis one na almost 13 times di number of electric cars wey dem sell last year for di country.
All dis dey happen as US and China dey face trade wahala. Di tariffs wey President Trump introduce before don cause plenty tension, but after Geneva talks, di two countries reduce di tariffs. US reduce am to 30 percent, while China reduce am to 10 percent.
Di wahala for di trade dey show how important materials like nickel, lithium, and rare earth elements dey for di production of batteries and other advanced technology. China and US don dey try find way to secure di supply of dis materials.
Last year, China control 58 percent of di global processed battery mineral exports, 53 percent of battery material exports, and 74 percent of battery pack and component exports. US still dey struggle to build supply chain wey no go depend on China.
While US dey invest $7.5 billion under di Inflation Reduction Act to build battery capacity, China dey show di world how dem dey use partnership like di $6 billion deal with Indonesia to control raw materials and production sites.
Lithium-ion batteries dey very important for clean energy and electric cars. Dem dey store energy from renewable sources like wind and solar, and dem dey help electric cars move far, charge fast, and last long.
By 2030, dem dey expect say over 40 percent of cars wey dem go sell for di world go be electric cars. But di main challenge na how to produce enough batteries wey go dey affordable and perform well.
China don dey lead for di production of lithium-ion batteries because of di way dem don plan their industrial policy for over 20 years. Dem control almost 75 percent of di world battery cell production capacity.
Di partnership wey China get with Indonesia na example of how dem dey secure raw materials and production sites together. Dis one dey different from di way Western countries dey separate mining, processing, and manufacturing.
US dey face big wahala to build their own battery capacity. Even with di $7.5 billion investment, dem still dey produce only 10-12 percent of di global battery capacity. To reach di target of 1,000 GWh by 2030, dem go need build more factories pass wetin China don do for 20 years.
Experts dey warn say if China decide to restrict exports or increase tariffs on battery components, e fit affect Western electric car makers and energy storage companies well well. Di US need to act fast to secure their supply chain and remain competitive.