China Battery Giant CATL Joins $6 Billion Venture in Indonesia

(Bloomberg) -- China’s top battery producer plans to boost its presence in the aspiring electric-vehicle hub of Indonesia by partnering with local state-owned groups to build a $5.97 billion mining-to-batteries complex.

A unit of Contemporary Amperex Technology Co. Ltd. will join PT Aneka Tambang and PT Industri Baterai Indonesia on the project that spans everything from nickel mining to battery materials, recycling, and an EV batteries factory.

The Southeast Asian nation is aiming to become a major player in the electric-vehicle supply chain linked to its massive reserves of nickel, a vital battery material. CATL already has some involvement in Indonesia, while Chinese firms including Tsingshan Holding Group play a major role in the country’s nickel sector.

“The Indonesia project is an important milestone for CATL as we expand our global footprint, and it will become an emblem of the everlasting friendship between China and Indonesia,” Robin Zeng, founder and chairman of CATL, said in a statement on Friday.

The project will be based in Indonesia’s North Maluku province. The joint venture still needs approval from the companies’ shareholders and from regulators.

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With assistance from Bloomberg