Chinese electric vehicle (EV) battery company Ningbo Contemporary Brunp Lygend (CBL) has agreed to invest US$420mil 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$420mil, 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, 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 US$6bil, 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 between Antam and Hong Kong CBL, he said. “In my personal view, we already have a reference for (the deal with) CBL. It will be easier. So we have a reference to use as a benchmark,