The Chinese company will be partnered by Singapore-incorporated firm Stellar Investment in the lithium plant in Indonesia Morowali Industrial Park
The project will produce lithium chemicals intended to be used in electric vehicle (EV) batteries. (Credit: (Joenomias) Menno de Jong from Pixabay)
Chengxin Lithium, a China-based lithium battery materials producer, has announced that it will acquire a stake of 65% in a $350m lithium project in Indonesia.
The investment in the Indonesian plant is said to be part of the company’s efforts to boost its overseas production capacity. It will be made through the company’s fully-owned subsidiary Chengxin Lithium Energy Group.
The plant will produce lithium chemicals intended to be used in electric vehicle (EV) batteries. It will be built in Indonesia Morowali Industrial Park (IMIP) in Morovali County on Sulawesi Island.
Chengxin Lithium will be partnered by Stellar Investment, a Singapore-incorporated firm, which will be holding the remaining 35% stake in the lithium plant.
The joint venture that will operate the plant will be known as ChengTok Lithium Indonesia.
As per a filing to the Shenzhen Stock Exchange, Chengxin Lithium said that the Indonesian plant will annually produce 50,000 tonnes of lithium hydroxide and 10,000 tonnes of lithium carbonate.
The company did not mention the source of the raw materials needed for producing the lithium chemicals.
The Chinese lithium battery materials producer did not give any details of when the lithium plant is likely to begin production.
Chengxin Lithium stated: “This investment will greatly expand the company’s lithium salt business production capacity.
“After the project is put into operation, it will significantly increase the company’s revenue and profitability.”
In a separate filing to the Chinese stock exchange, Chengxin Lithium revealed that its Hong Kong-based subsidiary had agreed to acquire Salta Exploraciones, an Argentinian miner, for $37.7m.