Indonesian nickel company PT Ceria Nugraha Indotama plans to receive support from Glencore for the construction of a battery factory ahead of its initial public offering (IPO) in 2025, according to a press release from Ceria Nugraha.
Glencore is in discussions to acquire a 10% stake in PT Ceria and finance a high-pressure acid leaching plant. Additionally, Glencore intends to acquire a direct stake in the new plant and sign an agreement to purchase electric vehicle battery components from PT Ceria.
As part of its strategy to expand in the Indonesian nickel industry, which accounts for about half of global production, Glencore is also considering acquiring a stake in mining company Trimegah Bangun Persada (Harita Nickel).
With Glencore's backing, PT Ceria aims to enter the global market and plans to offer 20% of its shares for fundraising before the IPO. The company expects to bring its first smelter online in 2024 and invest $8 billion in a series of processing plants to produce nickel and cobalt chemicals for electric vehicle batteries.
Macquarie Group and BNP Paribas are acting as listing consultants for the upcoming IPO.
Glencore, headquartered in Zug, Switzerland, is a major trading, logistics, and mining company, and one of the world's largest suppliers of minerals, non-ferrous metals, and energy carriers. PT Ceria Nugraha Indotama, headquartered in Jakarta, Indonesia, focuses on the exploration, development, enrichment, and processing of nickel ore and cobalt for battery production.
