China’s CBL set to invest RM1.94 billion in Indonesia’s nickel mining and battery manufacturing industries
Chinese battery company Ningbo Contemporary Brunp Lygend (CBL) is set to invest US$420 million (RM1.94 billion) in Indonesia’s nickel mining and EV battery manufacturing industries, the Jakarta Post reports.
According to the country’s coordinating maritime and investment affairs minister Luhut Binsar Panjaitan, the deal, which will see CBL investing in a joint venture project with state-owned diversified miner PT Aneka Tambang (Antam) as well as battery maker PT Industri Baterai Indonesia (IBC), has been inked.
“It’s been signed. (The deal is worth) around US$420 million, so even though nickel prices have slightly dropped, I think progress has been made. It will be announced on December 28,” he was quoted as saying by CNBC Indonesia during an online press conference last week.
The development follows on that from last year, when CBL – a subsidiary of Chinese battery giant Contemporary Amperex Technology Limited (CATL) – signed a framework agreement with Antam and IBI to develop an EV battery integration project in Indonesia, covering nickel mining, EV battery materials, EV battery production and battery recycling.
Initially estimated at nearly US$6 billion (RM27.7 billion), the project with CBL is expected to progress faster than a planned project with South Korea, Antam’s president director Nicolas D. Kanter said. This was because of existing connections and a signed conditional share purchase agreement between Antam and Hong Kong based CBL, he said earlier this year.
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