SAG’s Role in CATL’s Investment in Indonesia’s Nickel Mining & Battery Supply Chain

CATL (Contemporary Amperex Technology Co. Limited) has made significant investments in Indonesia’s nickel mining and battery supply chain, positioning the country as a major global hub for electric vehicle (EV) battery production. SAG (Stratcon Agara Global) has been involved in this initiative from the very beginning, leveraging its expertise in government relations, ESG compliance, and strategic advisory to facilitate CATL’s entry and expansion in Indonesia.

Client

CATL (Contemporary Amperex Technology Co. Limited)

Location

Jakarta, Indonesia

Industry

Mining, ESG Compliance, Sustainability

Background of CATL’s Investment in Indonesia

CATL has committed multi-billion-dollar investments to build nickel processing and battery manufacturing facilities in Indonesia, recognizing the country’s vast nickel reserves as critical for EV battery production.
Indonesia’s downstream nickel processing policies, including restrictions on raw ore exports, have encouraged companies like CATL to establish integrated supply chains within the country.
CATL has partnered with Indonesian and global firms to develop smelting, refining, and battery production plants, aligning with the government’s industrialization goals.

SAG’s Strategic Involvement in CATL’s Indonesia Operations

Government Relations & Regulatory Navigation
SAG played a crucial role in securing necessary approvals, licenses, and incentives for CATL’s projects.
Ensured compliance with PP No. 25 Tahun 2024 and Indonesia’s mining and industrial policies.

ESG & Sustainability Compliance

Assisted CATL in meeting Environmental, Social, and Governance (ESG) standards, critical for global investor confidence.
Supported carbon credit initiatives and sustainable mining practices.

Supply Chain & Offtake Agreements

Facilitated CATL’s partnerships with local nickel miners and processing companies.
Negotiated offtake agreements to secure a steady supply of refined nickel for battery production.

Stakeholder Management & Strategic Partnerships

Connected CATL with local industry players, investors, and policymakers.
Advised on structuring joint ventures with state-owned enterprises and private sector partners.

Impact of SAG’s Contributions

Accelerated Project Approvals: SAG’s government relations expertise expedited the licensing and approval process, reducing bureaucratic delays.
Enhanced ESG Standards: By ensuring compliance with international sustainability practices, SAG helped CATL position its Indonesian operations as an ESG-compliant investment.
Increased Investment Confidence: SAG’s involvement reassured foreign and domestic investors, facilitating additional capital inflows.
Stronger Local Integration: SAG helped CATL establish deeper ties with Indonesian nickel suppliers and downstream processors, securing long-term operational stability.

Future Opportunities & Expansion

SAG will continue to play a pivotal role in expanding CATL’s footprint in Indonesia, including potential investments in battery recycling and second-life battery applications.
With Indonesia pushing for more value-added processing, SAG is well-positioned to assist in further refining partnerships and securing additional incentives for CATL.
Expansion of EV battery production facilities and potential collaborations with Indonesian automotive manufacturers.

Conclusion

SAG’s early involvement and strategic guidance have been instrumental in facilitating CATL’s successful entry and expansion in Indonesia’s nickel mining and battery supply chain. As the EV market grows, SAG remains a critical partner in ensuring compliance, sustainability, and operational efficiency for large-scale investments in Indonesia’s resource sector.

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