Indonesian Government Says Chinese EV Battery Company Will Invest US$ 420 Million

FOREIGN DIRECT INVESTMENT - JAKARTA. The Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Panjaitan, revealed that the Chinese electric vehicle battery company, China Ningbo Contemporary Brunp Legend Co Ltd (CBL), has agreed to invest in Indonesia.

The investment announcement is planned to be made on December 28, 2023.

"Actually, it has already been signed for about US$ 420 million, so even though the price of nickel has dropped, it will be announced on the 28th (December 2023)," said Luhut in a press conference, Friday (22/12).

Previously, according to information on the CATL website, catl.com, the company on April 15, 2022, revealed that a tri-party framework agreement had been signed for the EV battery project.

The agreement involves Ningbo Contemporary Brunp Lygend Co Ltd (CBL), PT Industri Baterai Indonesia or Indonesian Battery Corporation (IBC), and PT Aneka Tambang Tbk (Antam). CBL is a subsidiary of CATL, through Guangdong Brunp Recycling Technology Co Ltd (Brunp).

The agreement is a plan for the implementation of an integrated EV battery project in Indonesia, covering nickel mining and processing, EV battery materials, battery manufacturing, and EV battery recycling.

The project is important for CATL to ensure the supply of raw materials and upstream resources, reduce production costs, and promote the development of EV battery recycling business.

"The Indonesia project is an important milestone for CATL as we expand our global footprint, and it will be a symbol of everlasting friendship between China and Indonesia," said Robin Zeng, founder and Chairman of CATL.