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On August 20, the first anniversary of Black Myth: Wukong's release, Game Science unveiled the next chapter in its franchise during the Gamescom expo.
This time, however, attention was focused on the teaser for a new action title in development: Black Myth: Zhong Kui.
<div class="embed-container"><iframe src="https://www.youtube.com/embed/NZ7VLcO06Ak?si=C0DTzHFI7fntwtdV?autoplay=0&amp;mute=1&amp;origin=https://kr-asia.com" frameborder="0" allowfullscreen> height="278" frameborder="0" allowfullscreen="allowfullscreen" data-ytbridge="vidSurrogate2"></iframe></div>
Over the past year, Black Myth: Wukong has become a milestone for China’s <a href="/industry/gaming">gaming</a> industry. It sold 20 million copies in its first month and surpassed 30 million within its first year. The game broke records as the bestselling premium title in China’s history and the top-selling game globally in 2024. It also earned multiple award nominations and wins across international platforms.
Following its success, players began calling for downloadable content (DLC). While Game Science did not meet those requests at Gamescom, producer Feng Ji addressed the topic on Weibo. He revealed that the game's success brought little lasting joy, describing feelings of emptiness and anxiety after completing a project nearly two decades in the making. Mounting pressure from players only intensified the creative void. Feng shared that, while he outwardly continued DLC work, he internally sought something new. A conversation with art director Yang Qi ultimately led to shelving DLC plans and initiating a new project.
Black Myth: Zhong Kui has only been in development for a few months, with no playable build yet. By releasing a trailer early, Game Science aims to maintain transparency and manage expectations, while echoing the studio’s strategy with the original Wukong teaser, which helped attract talent.
<h3>Has Black Myth: Wukong already fulfilled its mission?</h3>
Looking back, the answer seems clear. The game’s meteoric rise sparked a wave of interest that energized China’s gaming market. In its first week alone, sales topped 15 million copies and related videos on <a href="/company/bilibili">Bilibili</a> neared 700 million views. A symphonic concert series based on the game sold out almost instantly, with tickets in scarce supply.
The game also became a commercial powerhouse. A <a href="https://kr-asia.com/black-myth-wukong-frenzy-crashes-luckin-coffees-system-could-be-key-to-global-expansion">collaboration</a> with <a href="/company/luckin-coffee">Luckin Coffee</a> turned a themed latte into a top seller. Game merchandise frequently sold out shortly after launch. According to 36Kr, early co-branding opportunities commanded licensing fees ranging from hundreds of thousands to millions of RMB, with partnership deals spanning consumer electronics, gaming peripherals, food and beverage, and lifestyle products.
At Bilibili World 2025, Chow Tai Fook revealed that its jewelry collection co-branded with Black Myth: Wukong had surpassed RMB 1.5 billion (USD 210 million) in retail sales since its January launch, setting a new benchmark for collaborations between traditional jewelry and the gaming industry.
Beyond its commercial impact, Wukong also influenced cultural perceptions, highlighting the role of video games as both artistic expressions and cultural artifacts. Temples, statues, and historical architecture featured in the game became popular travel destinations. The tourism sector seized on this trend: during the 2024 National Day holiday, Shanxi reported a 46.9% year-on-year jump in visitors across 66 monitored scenic sites, totaling 7.84 million. Of those, 27 heritage sites featured in the game drew 1.89 million visitors and generated RMB 56.2 million (USD 7.9 million) in ticket sales.
Wukong’s popularity also inspired other Chinese developers to pursue console and high-end projects. Games like Wuchang: Fallen Feathers, Phantom Blade Zero, and Lost Soul Aside joined the wave. Larger firms followed suit, with NetEase teasing Blood Message and Tencent’s Aurogon announcing a new installment in the Swords of Legends series.
whereRelatedArticle
Of course, developing blockbuster titles typically takes three to five years or more. Had Black Myth: Wukong not broken through, smaller studios might have struggled to gain attention or funding, while larger players may have remained focused on mobile and online markets. Wukong paved the way for a broader shift.
Now, Game Science turns its attention toward building a wider Black Myth universe, grounded in Chinese mythology. The upcoming title centers on Zhong Kui, a Taoist figure known for vanquishing demons. His image, traditionally displayed in homes to ward off evil, has endured through centuries of folklore and art. The teaser features him riding a tiger, taking reference from Ming-era depictions that are still reimagined by modern artists today.
Though the choice of Zhong Kui as protagonist represents a shift from the Journey to the West-inspired narrative of Wukong, the game remains rooted in mythologies familiar across East and Southeast Asia. Players responded positively online, though the reveal was somewhat anticipated as Game Science had already registered trademarks for Black Myth: Zhong Kui and Black Myth: Jiang Ziya, signaling its direction.
Feng noted that the new project would feature new visuals, technologies, and storytelling. “We’ll take bold risks, break conventions, and start from scratch,” he said. The studio has already rebranded its Bilibili account from “Black Myth: Wukong” to “Black Myth,” adopting Zhong Kui imagery and identifying it as the franchise’s official account.
A full release of Black Myth: Zhong Kui could still be several years away. But as Feng put it, “with the unknown comes surprise, and with challenge comes joy.” Until then, the spotlight turns to Zhong Kui as he carries the Black Myth torch forward.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3430853207821955">article</a> was written by Liu Shiwu for 36Kr.

From Wukong to Zhong Kui, Game Science expands the Black Myth universe

Gaming

Creative

China

… that came under MariBank's management in April, extending its reach into another Southeast Asian market outside Singapore.
However, both Goh and Lai were conservative in describing plans for entering new regional markets, saying the priority is to grow their suite of financial services.
GXS and MariBank are branching into investment products like money market funds, which pool cash into short-term, lower-risk debt instruments that customers can park their savings in for potentially higher returns over deposit accounts. But whether such efforts can effectively buoy the digital banking model remains to be seen.
"Building pure digital banks in Singapore is still a new undertaking with a lot of operational details that the players need to figure out," Jianggan Li, CEO of consultancy Momentum Works, told Nikkei. "Most people in Southeast Asia are spoilt for choice when it comes to choosing a digital bank."
Trust Bank, Singapore's third virtual lender, is backed by Standard Chartered and FairPrice Group, which runs a chain of supermarkets across the city-state. It has managed to narrow losses the most among the trio of digital financial services platforms. With 260 staff, it booked a loss of SGD 93.4 million (USD 72.4 million) in 2024, its income statement shows, down from SGD 128.4 million (USD 99.5 million) a year before. The neobank has appealed to cost-conscious consumers who like the prospect of cheaper groceries, leveraging its venture with FairPrice to offer savings when clients use its cards at the supermarkets.
In February, Trust Bank announced that it had a customer base of one million in Singapore. CEO Dwaipayan Sadhu said in an email to Nikkei that regular use of his company's products such as credit and debit cards has driven "strong financial progress."
He did not, however, give any guidance on when it will reach profitability.
"Our key challenge is to continue innovating in a competitive environment where customers have many choices," Sadhu noted. "Our focus remains on creating meaningful, everyday engagement, giving customers compelling reasons to choose Trust."
With the neobanks still going through lossmaking stints, a spokesperson from Singapore's financial regulator told Nikkei that authorities have "no plans to issue additional licenses under the digital bank license framework."
"The introduction of digital banks has added diversity to our banking system and provided consumers and businesses with more options," the spokesperson said. "They are also expected to ensure that their risk management capabilities are commensurate with the complexity and scale of their operations, as they grow their business and customer base."
None of the three banks named an institution abroad they are benchmarking themselves against, so only time will tell whether they succeed. But even existing users, like Singaporean entrepreneur Benson Han, are only lukewarm about them. Lured by attractive interest rates, Han, who already had accounts with DBS, UOB, and OCBC, signed up with Trust Bank and MariBank, but says his enthusiasm has waned.
"Actually, [the digital banks are] not much of a difference," the 29-year-old told Nikkei. "I seldom use them."
This article first appeared on <a href="https://asia.nikkei.com/spotlight/asean-money/profits-and-customers-prove-elusive-for-singapore-s-digital-banks">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Profits, and customers, prove elusive for Singapore's digital banks

Payments

Lending

Digital Banks

Singapore

Southeast Asia

… the Philippines, and Cambodia, it has expanded to Uzbekistan and plans to enter Singapore and Japan.
Tianlala’s overseas division is rapidly maturing. After a period in which markets were developed country by country, the company is consolidating organizational experience and managing overseas markets centrally through its overseas division. In each country, Tianlala sets up a fairly complete operating structure while headquarters supports international trade, supply chain, functional teams, and product R&amp;D.
Many companies treat globalization as a CEO-level initiative. Chairmen and CEOs personally go into markets to feel the “temperature.”
“At Happy Lamb, the chairman and CEO participate in every market and every store’s early research and preparation. They are involved in mode adjustments, pricing, and other decisions. They need to understand the market firsthand by visiting local restaurants and wet markets to form judgments. For example, people assumed Cambodia would be too hot and low-spending, but our business there is good. You don’t know until you go,” Owen said.
The new wave of Chinese restaurant globalization that began in 2023 may owe its difference to the changing makeup of its leaders.
More restaurateurs with international vision and a capacity to keep learning are now at the helm of Chinese restaurant companies. They have more opportunities to take Chinese dining to more places around the world.
In this new global culinary exchange, we have reason to expect more global brands to emerge from China.

Hotpot, malatang, bubble tea: Chinese dining chains expand abroad to win over global palates

Retail

Consumer Economy

… same. The heavy lifting is on us. We design the chip internals, the architecture, and the toolchain so that everything just works seamlessly on the client end.
<h3>36Kr: Does CIM depend on advanced process nodes?</h3>
WQ: Actually, it’s less reliant. Because CIM reduces the number of data transfers, you get efficiency gains without needing the latest process node. It’s less demanding in that sense.
<h3>36Kr: Is there a risk that system-on-chip (SoC) manufacturers will eventually build their own external NPUs and undercut you?</h3>
WQ: SoC and CPU design is a very different skill set from designing NPUs. We specialize in AI compute and compiler systems. If needed, we can build lightweight SoCs to showcase our technology. But that’s not our core competency. It’s just a vehicle to highlight our strengths.
There’s some overlap and SoC makers might try to enter the NPU space, and vice versa. But it’s not easy. Back when I worked at Intel in the early 2000s, it had a market cap of USD 200 billion, while Nvidia was worth a fraction of that. Intel tried to make mobile CPUs, and Nvidia tried CPUs too. Neither succeeded. That shows how deep the capability gap is.
Will CPUs eventually absorb NPUs? That depends on the use case. If the AI workload is light, then yes, integrated NPUs (iNPU) can handle it. But if the demand is high and growing, standalone NPUs will persist, just like discrete GPUs have thrived alongside iGPUs.
<h3>36Kr: Horizon Robotics founder Yu Kai once said that the best strategy is not to gamble. You often stress the word “survival.” Would you say you have a no-gambling mindset too?</h3>
WQ: I’ve seen the brink. At Intel, AMD, Facebook, and earlier startups, I’ve watched companies navigate existential threats. Those experiences taught me that cool tech alone isn’t enough. The business model has to close the loop. You can only keep building if you survive. And when you’ve seen what it’s like on the edge of collapse, you realize how critical survival really is.
<h3>36Kr: For scientist-founders, becoming a businessperson is often the hardest part. When did that shift happen for you?</h3>
WQ: A bit of both. As a techie, I used to focus on competitions, publishing papers, and all that. But after founding Houmo, reality hit. If you only care about elegance, your company won’t make it.
Many scientist-founders don’t make that shift by choice. It’s forced on them.
<h3>36Kr: Was that transition hard for you personally?</h3>
WQ: It was tough. In earlier companies, even during crises, I wasn’t the one making final calls, so the pressure didn’t hit as hard. But after starting Houmo, I felt the full weight. Late 2020 to early 2022 was a great time. I could focus on technology and product development.
But from late 2022 onward, things got rough. The capital market cooled, US investors stopped backing Chinese semiconductor firms, and money dried up. That’s when it felt like I was trapped in a sealed room, gasping for oxygen. I had to break out. So I stepped out of my technical comfort zone. I helped with fundraising, pitched clients, and took on the role of entrepreneur. When survival is on the line, you have to shed your ego and do what’s necessary.
<h3>36Kr: What’s the story behind the company’s name?</h3>
WQ: When I started the company in late 2020, it was the peak season of "domestic substitution.” But I didn’t want to just replicate. I wanted to innovate and challenge the giants with new architectures. I was looking at next-gen approaches: CIM, photonics, quantum. CIM stood out as the most mature and the most practical, plus our founding team had the right background.
Even now, with the rise of large models, our mission hasn’t changed. We want to use next-gen technology like CIM to build extremely efficient chips for the next 50 years of computing. Not just to match the local standard, but to go toe-to-toe with Silicon Valley.
<h3>36Kr: After four years of building, what belief has stayed with you throughout?</h3>
WQ: It’s what I wrote in my WeChat bio: entrepreneurship means bravely walking through chaos.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3409394001972611">article</a> was written by Xiao Xi for 36Kr.

Beyond the cloud, Houmo.AI sees AI compute shifting to the edge

… Zhongtian Fortune, as <a href="https://kr-asia.com/deals-in-brief-shiok-burger-and-3cat-raise-funding-timah-partners-gets-usd-50-million-to-tackle-sme-succession-latest-china-deals-and-more">reported in June</a>. The company develops reusable crewed spacecraft and space tourism technology, positioning itself as a potential Chinese counterpart to SpaceX’s Dragon spacecraft. —<a href="https://36kr.com/p/3429302264548742">36Kr</a></li>
<li aria-level="1">MagicStore, a warehousing robotics firm, has secured an eight-figure RMB sum in new funding from Value Capital, Suzhou Industrial Park Technology Innovation Investment Fund, and existing investors. The company will use the funds for product upgrades, production capacity expansion, and international market entry. —<a href="https://36kr.com/p/3429111156313730">36Kr</a></li>
<li aria-level="1">Welight, a space launch startup founded this March, has raised an eight-figure RMB sum of angel funding from an undisclosed industrial institution in northern China, which will also serve as a long-term strategic partner. The company said funds will support team building and core technology development. Its flagship WG-1 rocket is reportedly the first in China to integrate full-flow staged combustion engines, carbon fiber composites, and liquid oxygen methane fuel. —<a href="https://36kr.com/p/3423412219219328">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Naluri, Prefer, Nibertex, and more made recent headlines:</h3>
<ul>
<li aria-level="1"><a href="https://www.naluri.life/">Naluri</a>, a Singapore-based digital employee health and wellbeing provider, raised USD 5 million as part of a broader Series B funding round. Telus Global Ventures’ Pollinator Fund for Good led the investment, while Sumitomo Corporation Equity Asia, M Venture Partners, and unnamed investors also participated.</li>
<li aria-level="1"><a href="https://www.prefer.coffee/">Prefer</a>, a Singapore-based food tech startup, raised USD 4.2 million in an oversubscribed funding round co-led by At One Ventures and Chancery Hill Capital, with participation from Forge Ventures.</li>
<li aria-level="1"><a href="https://nibertex.com/">Nibertex</a>, a Singapore-headquartered manufacturer of textile membranes, raised USD 7 million in a Series A funding round led by TNB Aura. Other investors include Asian Development Bank, Faircrest Holding, and Foxmont Capital Partners.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
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Deals in brief: WeRide secures Grab’s backing for robotaxis, Foxconn invests in Robocore, seven China deals, and more

Grab

WeRide

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Indonesia

Central Asia

Saudi Arabia

Hong Kong

Middle East

… Chinese-speaking marketers help navigate channels. For branding, local staff familiar with the culture are essential. At scale, such as running a factory, a fully localized team is critical. “If you’re still seen as a Chinese company at that point, not a global one, then you’ve failed,” she said.
Dubai allows greater hiring flexibility than Saudi Arabia, which enforces nationalization quotas. Emiratis make up just 10% of Dubai’s population, with a highly international workforce considered the norm.
Beyond recruitment firms, companies can tap local talent platforms, university partnerships, and initiatives by Dubai Chambers.
For manufacturers, localizing supply chains and after-sales support is key. In African markets, where wages are low and infrastructure weak, EV adoption remains slow. ZMEV is taking a "boots on the ground" approach by building charging networks, service centers, and local plants to draw in suppliers and grow the market. This diverges from the product-led model often used with fast-moving consumer goods.
Building a localized ecosystem often starts with partnerships. Li from PwC noted that joint ventures (JVs) aren’t always necessary, and companies should assess whether they need capital, resources, or both.
State-backed partners or sovereign funds offer more than capital, providing visibility and access. For large-scale projects like factory construction, JVs with upstream or downstream players can align long-term interests. Ownership structures should reflect regulatory and tax realities.
Bian suggested a phased approach: early entrants can work with local distributors or suppliers. Mature players might adopt a “<a href="/company/huawei">Huawei</a>-style” model—pairing the JV model with licensing to meet compliance requirements while scaling efficiently. Automotive firms can also use Hong Kong’s financial infrastructure to establish UAE-based entities, then form JVs under outbound direct investment (ODI) channels.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3409811547606658">article</a> was written by Feng Yaling for 36Kr.

For Chinese firms, the UAE’s business-friendly image comes with caveats

Cakap, a leading education group in Indonesia, has consistently demonstrated its commitment to advancing education through measurable and sustainable impact. For five consecutive years, Cakap has published its “Impact Report,” reaffirming its dedication to transparently capturing and reflecting the outcomes it has created. The <a href="https://cakap.com/cakap-impact-report-2024/">2024 edition</a>, released under the theme “From Today’s Impact to Tomorrow’s Sustainability,” highlights how the company has empowered six million students and more than 2,900 educators across Indonesia. The report positions Cakap not only as a growing business but also as a catalyst for change in the country’s education ecosystem.
Over the years, Cakap has built its foundation on four pillars: Cakap Language, Cakap Kids, Cakap Business, and Cakap Upskill. Each pillar is supported by multiple learning formats, from one-on-one sessions and group classes to self-paced modules. This approach makes learning accessible and adaptable to learners of all ages, from children to professionals and corporate teams. By designing a holistic learning ecosystem, Cakap seeks to address various educational needs while staying relevant in an evolving market.
At the center of this effort is the Cakap Impact Value Chain (IVC), a framework developed to align with the United Nations’ Sustainable Development Goals (SDGs). It illustrates how Cakap’s activities contribute to broader social outcomes and evolves in line with Indonesia’s education challenges. One of the report’s key findings is the lack of focus on early childhood education, a problem with long-term effects on literacy, skills, and employability. By identifying this gap, Cakap aims to expand its interventions and create solutions that address education challenges from the ground up.
<figure id="attachment_156750" aria-describedby="caption-attachment-156750" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-156750" src="https://console.kr-asia.com/wp-content/uploads/2025/08/Cakap-Impact-Report-2024-Infographic.jpg" alt="An overview of Cakap’s “Impact Report 2024,” highlighting its nationwide reach and measured outcomes." width="1920" height="1080" srcset="https://console.kr-asia.com/wp-content/uploads/2025/08/Cakap-Impact-Report-2024-Infographic.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/08/Cakap-Impact-Report-2024-Infographic-720x405.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/08/Cakap-Impact-Report-2024-Infographic-1024x576.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/08/Cakap-Impact-Report-2024-Infographic-768x432.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/08/Cakap-Impact-Report-2024-Infographic-1536x864.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2025/08/Cakap-Impact-Report-2024-Infographic-480x270.jpg 480w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-156750" class="wp-caption-text">An overview of Cakap’s “Impact Report 2024,” highlighting its nationwide reach and measured outcomes. Graphic and header image source: Cakap.</figcaption></figure>
The results highlighted in the report include both quantitative and qualitative progress. The most notable achievements include:
<ul>
<li aria-level="1">Over 56% of Cakap’s upskilling graduates secured jobs within one to three months.</li>
<li aria-level="1">73% reported income gains through Cakap’s job fair.</li>
<li aria-level="1">70% used Cakap’s test results to determine their next education step.</li>
</ul>
These figures reflect not only the scale of Cakap’s reach but also the concrete changes in learners’ and educators’ lives.
Cakap also recognizes that impact is not limited to external beneficiaries. The company prioritizes the well-being and development of its own team. Through continuous employee engagement programs, internal training, and development initiatives, Cakap ensures its workforce grows alongside the business. “Impact starts from within. At Cakap, we believe that when our people grow, our impact on education multiplies,” said Tomy Yunus, CEO of Cakap. This focus underscores Cakap’s belief that sustainable success requires investing in both its ecosystem and its people.
Looking ahead, Cakap remains committed to staying localized and agile, adapting to the specific educational needs of Indonesian communities. By strengthening its segment-based focus, the company aims to drive growth while reinforcing its role in building a more inclusive and resilient education system. Its latest report highlights that education technology, when executed with purpose and flexibility, can deliver profound social outcomes.
As it moves forward, Cakap pledges to continue building a stronger ecosystem that empowers students, supports educators, uplifts employees, and contributes to national development. By addressing challenges at their root, particularly in early education, Cakap strives to set a new standard for how edtech companies can grow sustainably while creating lasting impact.
<h3>About Cakap</h3>
Cakap is an Indonesian education group that provides a learning platform focused on upskilling and career readiness. Through a two-way interactive approach, Cakap connects learners with professional educators and industry experts across various fields, offering flexible learning methods including online classes, private sessions, and self-paced content. Available on Google Play and the iOS App Store, the platform is designed to be accessible to a wide audience. With internationally benchmarked curricula and a mission to improve lives through education, Cakap believes that everyone deserves access to relevant, high-quality learning.
This press release was published in partnership with <a href="https://cakap.com/">Cakap</a>. Press inquiries may be directed <a href="mailto:amirul@cakap.com">here</a>.

Cakap deepens roots in education by addressing early learning gaps, releases “Impact Report 2024”

Indonesia's <a href="/industry/ev">electric vehicle</a> battery industry is increasingly relying on Chinese companies including <a href="/company/catl">Contemporary Amperex Technology</a> (CATL) as other investors withdraw amid a slowing EV market and changes in technology, potentially leaving it with vast nickel reserves it may find difficult to build an integrated EV supply chain.
At a <a title="" href="https://asia.nikkei.com/business/automobiles/electric-vehicles/indonesia-breaks-ground-on-5.9-bn-catl-backed-battery-venture" target="_blank" rel="noopener">groundbreaking ceremony</a> for a CATL battery plant in Karawang, West Java, on June 29, Indonesian President Prabowo Subianto said the collaborative project between CATL and state-owned Indonesia Battery Corporation (IBC) will benefit all parties.
CATL, the world's largest supplier of EV batteries, is investing in six projects in Indonesia, with total investments expected to reach USD 5.9 billion.
The West Java plant will initially have an annual production capacity of 6.9 gigawatt-hours by the end of 2026, enough to power approximately 100,000 EVs. The plan is to increase capacity to 15 GWh.
In North Maluku, CATL plans to build a nickel mine and smelting facility in collaboration with state-owned mining company Aneka Tambang. In 2028, facilities to make processed nickel products for EV batteries are expected to go online, as is a cathode materials plant.
These investment plans were originally announced in 2022, with the initial plan being to build a battery plant and smelting facility by 2026. Construction has now finally begun, several years late.
Battery-related investment in the country is starting to show the strain of the global EV market slowdown.
In April, South Korea's LG Energy Solution announced it was withdrawing a planned USD 7.7 billion in investments in Indonesia facilities for battery materials, including cathode precursors.
Its earnings are deteriorating. Operating profit for the year ended December 2024 was down 70%.
The company will continue to improve operational efficiency to prepare for the risk of a decline in demand, said CFO Lee Chang-sil at an earnings briefing in late April. He added the company would reduce its planned capital investments for 2025 by more than 30% compared with the previous year.
Last year, European chemical multinational BASF and French mining company Eramet canceled the construction of smelting and other facilities planned in North Maluku. The supply of nickel materials rose while EV demand slowed, reducing the need for new investments.
Indonesia accounts for 60% of global production of nickel. Leveraging this strength, the previous administration of President Joko "Jokowi" Widodo moved to set up a one-stop supply chain in the country, covering everything from mineral to EV production, aiming to become a global industrial hub.
In 2020, the government banned the export of raw nickel and made domestic smelting mandatory. This led to a flurry of investment in smelting facilities using a high-pressure acid leaching method to process products for batteries. It also introduced several preferential EV policies, including exemptions from value-added and luxury taxes.
Drawn by the incentives, a number of countries expressed interest in investing at one point, but many eventually withdrew, increasing the country's reliance on China. LG Energy Solution's abandoned project is likely to be taken over by Chinese manufacturer Zhejiang Huayou Cobalt.
Chinese companies control about 75% of Indonesia's nickel smelting capacity, US think tank Center for Advanced Defense Studies said in a February report, warning that "this substantial foreign influence could limit its ability to control and shape the industry for its benefit."
As US-China tensions intensify under US President Donald Trump, the increasing reliance on China in Indonesia's EV battery industry could pose a headwind for exports.
Changing technology is also a factor in making non-Chinese companies cautious about battery-related investments. The proportion of vehicles equipped with ternary batteries that use nickel, manganese, and cobalt (NMC) fell to 50% of EVs sold worldwide last year, according to the International Energy Agency.
Meanwhile, the share of nickel-free lithium iron phosphate (LFP) batteries has been expanding, reaching 50% last year. These batteries have been widely adopted by Chinese automakers, which dominate the Southeast Asian EV market.
Demand for NMC batteries is now centered in Europe and the US LFP batteries are the mainstream in Southeast Asia, diminishing the advantages of an integrated production system in Indonesia that leverages its nickel reserves.
An Indonesian battery plant opened by Hyundai Motor and LG Energy Solution last year produces NMC batteries, 98% of which are exported to countries like South Korea and India. Hyundai's share of Indonesia's EV market plummeted from 44% in 2023 to 6% last year.
The CATL battery plant that celebrated its groundbreaking in June is also meant to produce NMC batteries.
"With the majority of EVs sold in Southeast Asia equipped with LFP batteries, it will be difficult to capture demand with EV batteries in the region alone," an executive at a Japanese manufacturer said.
This article first appeared on <a href="https://asia.nikkei.com/business/automobiles/electric-vehicles/nickel-king-indonesia-relies-on-china-s-catl-for-ev-supply-chain-ambitions">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Nickel king Indonesia relies on China's CATL for EV supply chain ambitions

CATL

East Asia

… one product detail you’ve invested a lot of effort into, but most users don’t notice?</h3>
LJ: Scene and character reference generation.
Anyone who uses image generation models knows how hard it is to maintain stylistic consistency. Writing effective prompts takes real skill. We spent a significant amount of time optimizing how prompts are interpreted so the agent better understands user intent.
Image models are more stable than video models right now, so that helps.
<h3>AN: CrePal avoids competing directly with large players at the model level. Is your advantage in user experience?</h3>
LJ: Yes. We’re continuing to refine the experience so that creators can enter and stay in a deep work state.
For example, we’re exploring batch generation for storyboard frames. Once scripts and character designs are ready, why not produce ten reference shots at once, display them in a preview board, and let users quote or edit directly?
We’re also building a community where users can share their work and learn from each other. That’s my top priority.
<h3>AN: You’ve said you’ll never profit from token arbitrage. Instead, you charge a service fee for orchestration. Why?</h3>
LJ: Primarily to save users money. I believe CrePal is the most cost-effective solution for 90 percent of AI video creators.
Some models output cleaner initial frames when used in a particular format, but only a handful of experienced users know this. CrePal reduces trial-and-error by handling those choices.
Users pay for CrePal’s reasoning and orchestration, not for access to the models themselves. We don’t build the models; we help people use them more effectively. Relying on token arbitrage doesn’t work in the long term. Our value lies in lowering the learning curve and improving efficiency.
<h3>AN: How is revenue so far?</h3>
LJ: We officially launched the beta on July 16. As of August 1, we have more than 5,000 registered users. Within 48 hours, we generated over USD 500 in subscription revenue.
<h2>Whoever masters orchestration, wins</h2>
<h3>AN: You’ve focused on agents since 2023. The term is now widely used. What’s the real value?</h3>
LJ: Innovative interaction design. That’s how you collect user memory and process data, which are two important future moats.
Most teams overlook this. They don’t consider what data is worth storing or what memories are worth recalling.
In early 2024, I debated with a well-known investor who claimed memory wouldn’t matter, arguing that future models could infer everything from minimal input. That’s an unrealistic assumption. Even the most advanced AI models need the right context to perform well.
<h3>AN: Some critics say agent-based apps are just wrappers and lack real innovation.</h3>
LJ: They are mistaken. Deep industry expertise isn’t the most important factor when building a vertical agent. It matters, but only to a certain extent.
The real differentiator is whether the team understands how to design and implement agent systems. That’s where most video agent teams fail.
Think of it like gaming. A professional League of Legends player like Faker may be exceptional at playing, but that doesn’t mean he can design or build the game itself.
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<h3>AN: CrePal’s value lies in orchestrating video models. Will the power dynamic shift from model makers to orchestrators?</h3>
LJ: Definitely. Think of orchestrators as platforms like Yelp or Xiaohongshu, which guide users toward actual solutions.
Right now, there are relatively few model makers. But by next year, we’ll likely see hundreds of video models entering the market. Creators will face choice overload: which ones should they use, and what combinations are most effective?
Model makers answer whether something can be done. Orchestrators figure out the fastest and most effective way to do it.
Once users experience CrePal, they find it difficult to return to manual workflows. Our system delivers significantly higher efficiency and ease of use.
CrePal is a practical product. In terms of relevance and impact, I see it on par with many model companies. I believe it offers a default approach to human-AI collaboration.
<h3>AN: What if tech giants copy your approach?</h3>
LJ: I’m not too concerned. Our team understands this space well and moves quickly.
To be honest, the only teams with stronger agent systems are focused on general-purpose agents or building their own vertical stacks. Anyone claiming to do exactly what we’re doing is likely overstating their capabilities.
CrePal remains a one-of-a-kind product globally.
<h3>AN: You don’t call yourself “the first” or “number one”?</h3>
LJ: Our users don’t care about that. They care about whether the product works, solves their problems, and saves them money. That’s all that matters to me.
<h3>AN: Final question. What are three books that have influenced you most?</h3>
LJ: The first is “Game Theory.” It gave me a new lens for thinking strategically, especially when considering how to work with or compete against large companies.
The second is “The Crowd: A Study of the Popular Mind.” I recommend it to every entrepreneur. It helped me understand how people collectively perceive a product and how to use that understanding to shape communication and marketing.
The third is “Advanced Mathematics.” The concept of limits, in particular, has been a useful framework for decision-making.
<a href="/collections/100-ai-creators">100 AI Creators</a> is a collaborative project between AI Now! and KrASIA, highlighting trailblazers in AI. Know an AI talent we should feature? <a href="mailto:ainow@kr-asia.com">Reach out to us.</a>
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