Indonesia to launch $2 bn EV fund with CATL
The Indonesia Investment Authority has announced an electric vehicle (EV) fund with Chinese battery maker CATL and CMB International. Providing financial services to institutions, corporations and individuals, CMB International is owned by Chinese Merchants Bank.
The $2 billion fund will invest in developing the EV value chain, driven by the increased collaboration to reduce greenhouse gas (GHG) emissions.
The fund will support the electric vehicle market to boost rapid development and help significantly reduce CO2 emissions. INA plans to increase the number of limited partners while keeping CATL and CMB International as the main partners.
According to INA, the Indonesian EV market expects to have 2.1 million electric motorcycles and 400,000 EVs by 2025. Indonesia banned the export of nickel in 2020 to ensure enough supplies for investors and aims to build its EV and battery manufacturing industry.
In April, CATL announced a $6 bn project in Indonesia as a part of its strategy of expanding out of China.