- CATL's joint venture in Indonesia plans to build a battery cell plant with an annual capacity of 15 GWh.
- The plant is expected to be commercially operational by 2027.
CATL (SHE: 300750) is seeking a loan of about $1 billion for investments in Indonesia, Bloomberg said in a report today, citing people familiar with the matter.
The loan, which could have a tenor of five to seven years, would be used for the company's joint venture, which plans to build a battery cell manufacturing plant in Karawang, West Java, according to the report.
Negotiations with potential financiers are ongoing and loan details could change, the report noted.
Last October, CATL, through its subsidiary CBL International Development, formed a joint venture with Indonesia's state-owned battery company, Indonesia Battery Corp.
The JV plans to invest $1.2 billion in Indonesia to build a battery cell manufacturing plant with a planned annual capacity of 15 GWh, which is expected to be commercially operational by 2027.
CATL is the world's largest maker of electric vehicle (EV) batteries, with a global share of 38.2 percent in January-February, according to South Korean market researcher SNE Research.
As of September 30, 2024, CATL had 13 battery production sites around the world, according to its prospectus for listing in Hong Kong, which was updated earlier today.
The company has already achieved mass production of lithium-ion battery cells at its plant in Thuringia, Germany, and is moving ahead with the construction of a plant in Hungary.
Last December, CATL announced that it would form a joint venture with Stellantis to build a lithium iron phosphate (LFP) battery plant in Spain, which will be CATL's third in Europe, with a total planned investment of $4.26 billion.
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