Indonesia Investment Authority to Partner with Chinese EV Battery Player and CMB International Capital on EV Value Chain

Posted on 11/14/2022

In June 2018, Ningde, Fujian-based Contemporary Amperex Technology Co., Limited (CATL) went public on the Shenzhen Stock Exchange with stock code 300750. The global electric vehicle market has shown exponential growth over the past decade. CATL is involved in the development and manufacturing of lithium-ion batteries, with business covering R&D, manufacturing and sales in EV battery systems for new energy vehicles and energy storage systems. CATL’s main products include the EV battery system, energy storage system, and Li-ion battery materials. In 2020, CATL formed two energy storage ventures with State Grid Integrated Service Group under the State Grid.

Indonesia Investment Authority (INA), Contemporary Amperex Technology Co., Limited, and CMB International Capital Corporation Limited (CMBI) signed a Memorandum of Understanding (MoU), planning to carry out investment, fund establishment and other cooperation in the field of new energy. All parties aim to jointly invest in the establishment of a Green Fund, which will focus on end-to-end electric vehicles (EV) value chain investment primarily in Indonesia, to support Indonesia’s sustainability and commitment to carbon neutrality by 2060.

The Green Fund will serve as a platform to seize investment opportunities in the emerging EV ecosystem. By leveraging Indonesia’s core advantages as a key producer of green raw materials, the growing domestic vehicle market, as well as each party’s strengths, networks, and resources, the Fund aims to deliver returns to its investors. With the parties’ concerted efforts, INA believes the size of the fund would reach up to US$ 2 billion.

Indonesia is claims to own one-quarter of the world’s nickel reserves. Nickel is a key material in the production of batteries.

Standard Chartered Bank is the financial advisor for INA in the partner selection process.

Keywords: China Merchants Bank.

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