The government says that the entire investment plan of China’s battery giant, Contemporary Emperex Technology Co. (CATL), amounting to US$5.8 billion or Rp 90.50 trillion has been finalized from upstream to downstream. PT Aneka Tambang Tbk. (Antam) has completed the sale and purchase agreement (SPA) transactions for the shares of its subsidiaries, PT Sumberdaya Arindo (SDA) and PT Feni Haltim (FHT), with CATL’s affiliate HongKong CBL Limited (HKCBL) at the Ministry of Investment in Jakarta on December 28, 2023.
This share transaction marks the beginning of collaboration between Antam and CATL in the upstream mining, refining, and further processing of nickel derivatives into battery cells in the Dragon project undertaken by the global electric battery producer in Indonesia.
Deputy Minister of Investment and Mining at the Coordinating Ministry for Maritime Affairs and Investment, Septian Hario Seto, said that Antam, along with Indonesia Battery Corporation (IBC), has signed a Joint Venture Agreement with CATL for downstream projects related to their electric battery development cooperation in the country.
The consortium is planning to realize investments in downstream facilities for cathode, precursor, and battery cell factories after completing the SPA signing on the upstream side.
“The next stage of development downstream already has its timetable,” Seto said. The investment allocation will be absorbed gradually over a period of 3 to 4 years in line with the timeline of the electric battery industry’s construction phases.
Antam and CBL made two transactions on Dec. 28, 2023, including a share transaction for Antam’s subsidiary SDA and another for FHT. The SDA-HKCBL divestment transaction value, to be paid in cash by HKCBL to Antam, is US$416.5 million or equivalent to Rp 6.5 trillion. Antam also holds a contingent right to receive payment if additional reserves are discovered in the SDA mining area within 36 months from the transaction date, i.e., December 28, 2023.
