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Indonesia, CBL reach $420 million deal on EV battery industry
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The Pomalaa nickel smelter in Kolaka, Southeast Sulawesi, operated by state-owned diversified miner PT Aneka Tambang (Antam), is pictured in this undated file photo. (Handout/Antam)
C
hinese electric vehicle (EV) battery company Ningbo Contemporary Brunp Lygend (CBL) has agreed to invest US$420 million in Indonesia’s nickel mining and EV battery manufacturing industries.
Coordinating Maritime and Investment Affairs Minister Luhut Binsar Panjaitan said the deal involved a partnership between CBL and state-owned diversified miner PT Aneka Tambang (Antam), as well as state-owned battery maker PT Industri Baterai Indonesia (IBC).
"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 Dec. 28," he said during an online press conference on Friday, as quoted by cnbcindonesia.com.
Previously, CBL signed a framework agreement with Antam and IBI on April 14, 2022, for the EV Battery Integration Project in Indonesia, covering nickel mining, EV battery materials, EV battery production and battery recycling.
Initially estimated at nearly $6 billion, the project with CBL is expected to progress faster than a planned project with South Korea, according to Antam's president director Nicolas D. Kanter.
This was because of existing connections and a signed Conditional Share Purchase Agreement (CSPA) between Antam and Hong Kong CBL, he said.
"In my personal view, we already have a reference for [the deal with] CBL. Insya Allah [God willing], it will be easier. So we have a reference to use as a benchmark," Nicholas said in April, as reported by cnbcindonesia.com.
