China’s CATL Commences $6B Battery Project in Indonesia

Today’s ESG Updates

• $6B CATL Battery Plant Bolsters Indonesia’s Clean Energy Ambitions: The facility will produce enough batteries for 250,000-300,000 EVs annually.
• Canada Repeals Tech Tax: Canadian Prime Minister aims to reset trade talks with Trump and ease cross-border tensions.
• U.S. Republicans Propose Early End to EV Tax Credits: Senate bill would terminate tax credits by September, a rapid blow to U.S. EV adoption.
• Global Investors Increasingly Pivot to Europe Amid U.S. Tariff Turmoil: European equity funds see $100B inflow, while U.S. outflows double.

Indonesia emerges as EV battery leader with $6B CATL investment

The world’s top EV battery maker, Contemporary Amperex Technology Co. (CATL), has broken ground on a $6 billion battery materials hub in Indonesia, advancing the country’s goal to become a major player in the global EV supply chain. In partnership with Indonesia Battery Corp. and PT Aneka Tambang, the venture includes a 15 GW battery plant, solar storage units and nickel smelters. The project supports Indonesia’s energy independence and is a groundbreaking move in localized battery production to cut costs, reduce supply chain risks, and boost renewable energy integration.

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Further reading: CATL Breaks Ground on $6 Billion Indonesia Battery Venture

Canada drops tax on tech giants to restart U.S. trade talks

Canada has scrapped its planned 3% digital services tax on major tech firms like Amazon and Meta, days before the first payments were due. The decision follows rising tensions with President Trump, who called the levy a “blatant and direct attack” and threatened retaliatory tariffs. Canadian Prime Minister Mark Carney said the repeal supports progress on a new economic and security agreement with the U.S., now back on track for a July 21 target. The $3B tax reversal underscores Carney’s priority to maintain trade relations with the U.S. as it remains the country’s second-largest trading partner after Mexico.

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Further reading: Canada rescinds digital services tax to advance broader trade negotiations with the United States

U.S. Senate Republicans aim to terminate EV tax credits by September

U.S. Senate Republicans unveiled a revised budget bill late Friday that further threatens the country’s EV adoption. The revised bill would eliminate the $7,500 federal tax credit for new EVs and the $4,000 credit for used ones by September 30, significantly faster than the previous version, which would phase them out through 2026. The bill also weakens fuel economy standards and prioritizes gas-powered cars by offering temporary tax breaks on U.S.-made auto loans. The legislation marks another major rollback of Biden’s climate and transportation policies. The bill would stall EV adoption just as global markets accelerate toward electrification.

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Further reading: Senate Republicans seek to end EV tax credit by September 30

Global investors look to Europe amid U.S. tariff turmoil

Investors are increasingly turning to Europe as U.S. markets face complete uncertainty under Trump’s constantly changing trade war. More than $100 billion has flowed into European equity funds in 2025, while U.S. funds saw nearly $87 billion in outflows. Peter Roessner, the CEO of hydrogen firm H2Apex, says his company is now prioritizing European suppliers for its €200 million project due to the “absolute uncertainty” in the U.S. Europe now has the advantage of perceived regulatory stability and industrial investment momentum, but the EU must act quickly to capitalize on this window of investor interest. Companies can keep up with the latest ESG policy shifts and investment trends through the use of ESG tools.  

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Further reading: Investors flock to Europe as bloc’s stability contrasts with concerns over US

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Pixabay