Contemporary Amperex Technology Co (CATL), a prominent Chinese battery manufacturer, is set to fulfill its investment commitment for an Indonesian battery project in early December 2023.
The commitment will be carried out by its subsidiary, PT Ningbo Contemporary Brunp Lygend Co, Ltd. (CBL), in partnership with the Indonesia Battery Corporation (IBC) consortium, which comprises of state-owned enterprises.
Collaboration with Antam
In collaboration with PT Aneka Tambang Tbk. (Antam), a joint venture between CBL and Antam will concentrate on the upstream mining sector.
Antam plans to divest 49% of its shares in the nickel mining concession managed by its subsidiary, PT Sumberdaya Arindo, to Hong Kong CBL Limited (HKCBL), a CBL-controlled subsidiary.
IBC’s CEO, Toto Nugroho, revealed that the agreement between Antam and CATL in the mining sector is in its final stages.
The upcoming share transaction symbolizes the realization of CATL’s investment encompassing mining, smelting, cathode precursor production, battery cells, and battery pack.
During a parliamentary hearing with Indonesia’s Commission VII on Monday (27/11/2023), Toto announced that with CATL in the final stages, December 10 marks the commencement of the cashing-in process in the upstream phase, officially initiating the entire process from mining to downstream.
Follow up process to share sales and purchase agreement
This process follows the conditional share purchase agreement (CSPA) signed between Antam and HKCBL regarding a portion of Antam’s ownership in PT Sumberdaya Arindo (PT SDA) on January 16, 2023.
The signing of the CSPA was accompanied by the conditional shareholders’ agreement (SHA) on the same day, with the conditional SHA taking effect upon the partial transfer of Antam’s ownership in PT SDA, aligning with the completion date of the CSPA.
CATL, in its Dragon battery project, commits an investment of approximately US$6 billion, equivalent to IDR 92.48 trillion (based on an exchange rate of IDR 15,349 per US$).
The investment will be carried out in stages for 3 to 4 years, in tandem with the development timeline of the electric battery industry, covering the entire value chain from upstream to downstream in collaboration with IBC.
