The Jakarta Post reports that China-based Ningbo Contemporary Brunp Lygend (CBL)—a subsidiary of battery giant Contemporary Amperex Technology Limited (CATL)—will invest US$420 million in Indonesia’s nickel mining and EV battery manufacturing industries.

Coordinating Maritime and Investment Affairs Minister Luhut Binsar Panjaitan said the deal involved a partnership between CBL and state-owned diversified miner PT Aneka Tambang (Antam), as well as state-owned battery maker PT Industri Baterai Indonesia (IBI).

CBL signed a framework agreement with Antam and IBI last year to develop an EV battery integration project in Indonesia.

The project contains six segments: nickel mining; RKEF (rotary kiln-electric furnace for the production of ferronickel from nickel laterite ore); HPAL (high pressure acid leach, used to extract nickel and cobalt from laterite ore); battery materials, battery recycling and battery manufacturing.

Global demand for nickel is growing rapidly, driven by its use as a key component in EV batteries. The US Geological Survey (USGS) estimated that global nickel mine production grew 21% in 2022.

Indonesia, along with Australia, has the world’s largest nickel ore reserves, estimated by the USGS to be 21,000,000 tons.