State-owned mining company PT Aneka Tambang (Antam) and China’s battery giant, Contemporary Emperex Technology Co. (CATL), are developing midstream nickel industry.

Chief Executive Officer of Antam, Nico Kanter, said both companies are preparing land for the industrial park, arranging the permits and carrying out feasibility study to finalize the midstream sector including Rotary Kiln-Electric Furnace (RKAF) and High Pressure Acid Leaching (HPAL).

“All are still on going” Nico Kanter said in Jakarta on Monday, July 22, 2024.

Earlier reports reveal that the entire investment plan of CATL, amounting to USD 5.8 billion (IDR 90.50 trillion) has been finalized from upstream to downstream. Antam has completed the sale and purchase agreement (SPA) transactions for the shares of its subsidiaries − PT Sumberdaya Arindo (SDA) and PT Feni Haltim (FHT) − with CATL’s affiliate HongKong CBL Limited (HKCBL) at the Ministry of Investment in Jakarta on December 28, 2023.

This share transaction marks the beginning of collaboration between Antam and CATL in the upstream mining, refining, and further processing of nickel derivatives into battery cells in the Dragon project undertaken by the global electric battery producer in Indonesia.

Deputy Minister for Investment and Mining at the Coordinating Ministry for Maritime Affairs and Investment, Septian Hario Seto, said that Antam, along with Indonesia Battery Corporation (IBC), has signed a Joint Venture Agreement with CATL for downstream projects related to their electric battery development cooperation in the country.

The consortium is planning to realize investments in downstream facilities for cathode, precursor, and battery cell factories after completing the SPA signing on the upstream side.

“The next stage of development downstream already has its timetable,” Seto said.

The investment allocation will be absorbed gradually over a period of three to four years in line with the timeline of the electric battery industry’s construction phases.

Antam and CBL made two transactions on December 28, 2023, including a share transaction for Antam’s subsidiary SDA and another for FHT. The SDA-HKCBL divestment transaction value, to be paid in cash by HKCBL to Antam, is USD 416.5 million or equivalent to IDR 6.5 trillion. Antam also holds a contingent right to receive payment if additional reserves are discovered in the SDA mining area within 36 months from the transaction date, i.e., December 28, 2023.