Wedoany.com Report-Oct. 22, On October 20, Contemporary Amperex Technology Co., Limited (CATL) announced approval of a procurement agreement to support construction and production at its battery manufacturing plant in Indonesia. The agreement involves CATL’s subsidiaries CATL HK and CATI entering into a contract with CATIB, the operating entity of the Indonesian facility. Under the deal, CATIB will acquire production equipment from CATL HK and on-site technical services from CATI. The contract is expected to be signed by October 31, pending internal approvals.

The procurement covers battery production equipment and components for cell, module, pack, casing, and housing production lines, along with associated auxiliary systems. On-site services from CATI include installation, commissioning, manpower support, and equipment integration. The total contract value is US$131 million, with US$109 million allocated to equipment purchases and approximately US$22.116 million for service fees.

CATL highlighted that, as a global leader in new energy technologies, it leverages extensive manufacturing experience, technological expertise, and cost advantages through centralized procurement and supply chain management. The Indonesian battery plant is a key part of CATL’s international expansion strategy. By sourcing advanced production equipment and services through its global network, the company aims to ensure efficient project execution while maintaining technological leadership and competitiveness.

The new facility is expected to enhance production efficiency and support CATL’s goal of strengthening its position in the global battery market. The project aligns with CATL’s broader strategy of expanding overseas manufacturing capabilities to meet growing demand for batteries in electric vehicles and energy storage systems.

Through the procurement agreement, CATL intends to integrate its advanced equipment and technical expertise into the Indonesian plant. This integration will help standardize production processes, improve operational efficiency, and accelerate the ramp-up of battery output. CATL emphasized that the coordinated approach between equipment supply and on-site services will optimize the facility’s performance and reduce operational risks.

By investing in both equipment and technical support, CATL aims to deliver high-quality batteries that meet international standards. The Indonesian plant is expected to become a significant contributor to CATL’s global production capacity, reinforcing the company’s ability to serve international markets efficiently.

Overall, the agreement marks a strategic step in CATL’s overseas expansion, reflecting its commitment to leveraging global resources, technological expertise, and operational experience. The initiative is designed to enhance the company’s competitive position in the rapidly growing battery industry, ensuring the Indonesian facility operates at a high standard while supporting CATL’s long-term growth objectives in the international energy and electric vehicle markets.