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INDONESIA, 25 December 2023: In a significant development for Indonesia’s electric vehicle (EV) battery industry, Ningbo Contemporary Brunp Lygend (CBL), a prominent Chinese EV battery company, has committed a substantial investment of USD 420m. The deal, a collaboration between CBL, state-owned PT Aneka Tambang (Antam), and PT Industri Baterai Indonesia (IBC), marks a milestone for the nation’s nickel mining and EV battery manufacturing sectors.
Partnership Overview
The partnership, confirmed by Coordinating Maritime and Investment Affairs Minister Luhut Binsar Panjaitan, emphasizes CBL’s commitment to Indonesia’s nickel mining and EV battery industries. The involved entities include Antam, a state-owned diversified miner, and IBC, a state-owned battery manufacturer. Despite a slight drop in nickel prices, Minister Panjaitan expressed optimism about the progress made, with the official announcement scheduled for December 28.
Project Background and Progress
CBL’s involvement in Indonesia’s EV battery landscape traces back to April 14, 2022, when a framework agreement was signed with Antam and IBC. This comprehensive agreement encompasses various facets of the EV battery industry, including nickel mining, EV battery materials, production, and recycling. Initially projected at nearly USD 6bn, the project is anticipated to advance rapidly compared to a parallel initiative with South Korea, attributed to pre-existing connections and a conditional share purchase agreement between Antam and Hong Kong CBL.
Potential Impact and Industry Insights
Antam’s President Director, Nicolas D. Kanter, expressed confidence in the accelerated progress of the collaboration with CBL. He cited existing connections and a signed conditional share purchase agreement as factors contributing to the project’s efficiency. With a reference point established, Kanter foresees a smoother implementation of the deal, marking a positive turn for Indonesia’s EV battery industry.
Conclusion
CBL’s USD 420m investment stands as a pivotal moment for Indonesia’s EV battery industry. The collaboration with Antam and IBC, with its comprehensive scope, signifies a significant leap forward. As the official announcement approaches, the industry anticipates positive developments and heightened prospects, positioning Indonesia as a key player in the ever-expanding global EV market. Stay tuned for updates on this transformative partnership.
Image credit: opengovasia
