China News Agency, Beijing, April 15 (Reporter Chen Kangliang) China’s A-share listed company Ningde Times New Energy Technology Co., Ltd. (hereinafter referred to as Ningde Times) announced on the 15th that the second meeting of the company’s third board of directors was held on the 14th. The “Proposal on the Investment and Construction of Power Battery Industry Chain Projects by Holding Subsidiaries in Indonesia” was reviewed and approved. The company’s holding subsidiary Guangdong Bangpu Cycle Technology Co., Ltd. It is called Puqin Times) to invest in the construction of a power battery industry chain project in Indonesia.
The announcement stated that with the advancement of global energy reform, transformation and upgrading, and the continuous increase in carbon emission requirements, the new energy industry has developed rapidly in recent years, and the resources required for global power battery production have increased accordingly. In order to ensure the supply of key upstream resources and raw materials, the company plans to establish a joint venture between Prokin Times, a holding subsidiary, and partners PT Aneka Tambang Tbk (hereinafter referred to as “ANTAM”) and PT Industri Baterai Indonesia in East Halmahera, North Maluku, Indonesia. The county’s FHT Industrial Park and other related industrial parks in Indonesia jointly invest in the construction of the power battery industry chain project. The total investment amount that has been determined so far in the project does not exceed 5.968 billion US dollars or equivalent currency.
According to reports, all parties to the project agreed to build an end-to-end electric vehicle battery industry in Indonesia, integrating mining, smelting, precursors, cathodes, batteries and battery recycling industries. The joint venture construction projects include nickel ore development projects, pyrometallurgical projects, wet smelting projects, battery recycling projects, battery material projects and battery manufacturing projects.
Ningde Times said that the implementation of this project is conducive to further improving the company’s strategic layout in the lithium battery new energy industry, ensuring the company’s upstream key resources and raw material supply, reducing the company’s production costs, and promoting the company’s battery recycling industry layout. The investment and construction of this project will increase the company’s capital expenditure and cash expenditure, but will have a positive impact on the company’s business layout and operating performance in the long run.
The announcement also reminded related risks that the project has construction and approval risks. Due to the large scale and long construction period of the project, there is a risk that the project will not be completed on schedule or that the construction cost will be higher than expected. In addition, this investment still needs to be approved by the general meeting of shareholders of CATL, the general meeting of Prokin Times, and the general meeting of ANTAM, as well as the approval or filing of the Chinese and Indonesian governments and relevant departments, and there are certain uncertainties.