Shanghai (Gasgoo)- On October 20, Contemporary Amperex Technology Co., Limited ("CATL") announced that it has approved a procurement agreement to support the construction and production needs of its battery manufacturing plant in Indonesia.
Under the deal, CATL's subsidiaries CATL HK and CATI will enter into an equipment and services procurement contract with CATIB, the operating entity of the Indonesian facility. CATIB will purchase production equipment from CATL HK and on-site technical services from CATI. The agreement is expected to be signed by October 31, pending internal approvals from all parties.
According to the terms of the agreement, CATIB will procure battery production equipment and components from CATL HK for its Indonesian facility. The scope covers equipment for cell, module, pack, casing, and housing production lines, as well as related auxiliary systems. In addition, CATIB will purchase on-site services from CATI, including installation, commissioning, manpower support, and equipment integration. The total contract value is set at US$131 million, comprising US$109 million for equipment purchases and approximately US$22.116 million for service fees.
CATL noted that, as a global leader in new energy technologies, it benefits from extensive manufacturing experience, technological expertise, and strong cost advantages through centralized procurement and supply chain management. The Indonesian battery plant is a cornerstone of CATL's international expansion strategy. By leveraging its global procurement network to source advanced production equipment and services, the company aims to ensure the project proceeds efficiently while maintaining technological leadership and cost competitiveness. This approach, CATL said, will boost production efficiency at the Indonesian plant and strengthen the company's overall market position in the global battery industry.
