PT Aneka Tambang (Persero) Tbk (ANTM) or Antam targets the signing of a joint venture (JV) with PT Ningbo Contemporary Brunp Lygend Co., Ltd .(CBL) and LG Energy Solution for the development of electric vehicle batteries (EV batteries) in the fourth quarter of 2022.

"We have signed a framework agreement, but it is not final. Therefore, we are pursuing it so that it can deliver this year. God willing, we can sign until the JV agreement," Nico said recently.

Until now, continued Nico, the company is still in the process of calculating resources. Because, from the signing of this JV, there will be resources that are converted into reserved. That's why the company doesn't want to rush to take approval." This must be calculated because later it will divest as much as 49% of our resources. We still have the majority but CBL and LG will have 49% of the resources or reserved later. From that result, then we will be able to monetize," added Nico.

Through this method, according to Nico, the company will get equity for capital participation. "So, later for the construction of smelters through the Rotary Kiln Electric Furnace (RKEF) and High Pressure Acid Leaching (HPAL) systems, we do not need to spend additional capital," he said.

Meanwhile, the investment value of the construction of smelters with RKEF and HPAL technology, Nico revealed that his party could not mention because the finalization process was still being carried out.

In the strategic partnership between Antam and the two top players of the world's battery industry, Nico stated that Antam only acts as a supplier of nickel ore for the main raw materials of the battery industry. "So, this is what we are going to do our cooperation with CBL and LG," he said.

Regarding the JV signing target, President Director of Indonesia Battery Corporation (IBC) Toto Nugroho also added that the stages to date are in the process of transferring aspects of mining business permits (IUP) to the JV mining stage.

"Insyallah, the fourth quarter of 2022 has carried out signatures for the mining side. In terms of mining side partners, they (CBL and LG) will create a JV and start for Engineering, Procurement, and Construction (EPC)," said Toto.

Source: https://investor.id/market-and-corporate/307470/antam-antm-bidik-perusahaan-patungan-cbl-dan-lg-diteken-kuartal-iv2022