Toyota partners with CATL to produce batteries in Indonesia, export to start later this year
Toyota Motor Manufacturing Indonesia (TMMIN) announced a partnership with China’s battery giant CATL to produce batteries in Indonesia, local media reports. The batteries will be used in Toyota hybrid vehicles for both the domestic market and exports.
Exports are scheduled to begin in the second half of 2026. TMMIN said the exports will include both complete battery packs and battery components.
The battery export plan is part of a 1.3 trillion rupiah (75.8 million USD) investment by TMMIN to produce hybrid battery cells and modules with China’s CATL. The project covers battery localisation from raw materials to finished products.
TMMIN president director Nandi Julyanto confirmed the cells and modules, which are currently imported, will later be produced locally.
“Currently, TMMIN has a battery pack production line at its Karawang plant to produce batteries for the Toyota Kijang Innova Zenix HEV, Veloz HEV, and Yaris Cross HEV. Through a strategic collaboration with CATL in Indonesia, we are striving to increase the production capacity of battery assembly packs to the overall manufacturing of battery cells and modules,” Nandi said.
Local media outlet Mobil123 reported that the project is expected to raise the domestic component level for Toyota batteries. Rockomotif cited Nandi as saying local battery content could increase from around 8% when limited to assembly to as much as 80% once cell and module production are localised.
The export plan gives Indonesia a larger role in Toyota’s regional supply chain for electrification. TMMIN said the program will support both the local vehicle industry and overseas markets, with exports covering completed hybrid vehicle batteries and battery components.
Toyota said the project fits its multi-pathway strategy, which includes hybrid electric vehicles, plug-in hybrids, battery electric vehicles, fuel cell vehicles, and flexible-fuel vehicles using bioethanol blends.
Indonesia’s HEV (also called mild hybrids or, as Toyota puts it, “electrified vehicle”) market continued to grow in 2025. Citing GAIKINDO data, TMMIN said sales of “electrified vehicles” reached 177,367 units, up 71%from 103,452 units in 2024.
“Electrified vehicle” production in Indonesia totalled 127,420 units in 2025. Hybrid vehicles accounted for 97,462 units, or about 76.5% of total electrified vehicle output.
The Chinese battery maker already has a major battery project in Indonesia. In June 2025, CATL broke ground on a joint venture battery plant in Karawang, West Java, with Indonesia Battery Corp and PT Aneka Tambang. The project is expected to have 15 GWh of annual capacity and is part of a wider plan that also includes nickel mines, smelters, and a battery precursor factory.
CATL is the world’s largest EV battery maker. In China, it accounted for nearly half of the market in the first quarter of 2026, with 59.52 GWh of installed capacity and a 48.3% share, according to China Automotive Battery Innovation Alliance (CABIA) data.
