Battery giant CATL seals $6b project with Indonesian companies

Chinese battery giant Contemporary Amperex Technology Co Ltd is looking to beef up presence in Indonesia.[Photo/Sipa]

Chinese battery giant Contemporary Amperex Technology Co Ltd is looking to beef up presence in Indonesia through cooperation with local state-owned companies in a $5.97 billion battery-related project.

Ningbo Contemporary Brunp Lygend Co Ltd, a subsidiary of CATL's Guangdong Brunp Recycling Technology Co Ltd, signed a tri-party framework agreement with PT Aneka Tambang and PT Industri Baterai Indonesia, which are Indonesian state-owned companies on mining and battery, respectively.

The three companies will partner in nickel mining and processing, battery materials, battery manufacturing as well as battery recycling, according to the agreement.

"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," said Robin Zeng Yuqun, founder and chairman of CATL.

Industry experts said the move will enhance CATL's footprint in the battery industry, ensure the supply of upstream raw materials and resources and drive battery recycling business.

"The framework agreement we signed today is of significant importance to Indonesia as we strive to build an EV ecosystem," said Luhut Binsar Pandjaitan, coordinating minister for maritime affairs and investments of Indonesia.