Contemporary Amperex Technology Co. Ltd. (CATL), the world's top maker of electric vehicle batteries, is seeking a loan of about US$1 billion ($1.29 billion) to fund an investment in Indonesia, according to people familiar with the matter.
The facility could carry a tenor of five to seven years, said the people, who asked not to be identified discussing private matters. Proceeds will finance the firm's joint venture, which plans to build a battery cell manufacturing facility in Karawang, West Java, the people said.
Talks with potential financiers are ongoing and the loan's details could change, the people said. CATL didn't respond to requests for comment.
CATL's effort to ramp up its battery-making facilities in Indonesia come as the Chinese electric vehicle battery giant begins gauging investor interest for a potential US$5 billion share sale that could be Hong Kong's biggest listing in years.
The company has said that it expects to see little impact from the tariffs the Trump administration has imposed on China because the company's US exposure is "quite small".
In October 2024, CATL, through its subsidiary CBL International Development, formed the JV with government-owned Indonesia Battery Corp. The venture plans to invest US$1.2 billion in the Southeast Asian country, scaling up the Fujian-based firm's battery production to 15 gigawatts a year.
