Toyota has partnered with China-based CATL to produce hybrid vehicle batteries in Indonesia, marking a move toward deeper localisation of its supply chain in Southeast Asia, as reported by Detik.
The collaboration, led by PT Toyota Motor Manufacturing Indonesia (TMMIN), involves an investment of up to IDR 1.3 trillion. Production will take place at CATL’s facility in Karawang, West Java, where battery packaging, assembly, and key components such as battery cells and modules will be manufactured.
Production of components is set to begin in the second half of 2026. The initiative aims to reduce reliance on imported battery parts while building domestic manufacturing capability using local talent.
TMMIN said the partnership is part of a gradual localisation strategy and could position the company as the first Toyota unit in ASEAN to export batteries to global markets.
CATL stated that its Indonesian plant is operationally ready and described the partnership as a starting point for further expansion in Indonesia and across Asia.
Hybrid vehicles sold by Toyota in Indonesia are expected to use locally produced batteries under this arrangement. The companies have not disclosed any potential impact on vehicle pricing.