By Dominikus
China-based Chengxin Lithium Group Co., Ltd., through its subsidiary PT Chengtok Lithium Indonesia, is working to bring its Indonesian lithium chemical (lithium salt) plant to full commercial operation, even though the project recorded no product sales in 2024, according to its 2024 Annual Report released in March.
Chairman Zhou Yi stated in the report that the company “will actively promote the development of overseas customers and certification processes, ensure stable lithium ore supply, improve operational efficiency, and strive to achieve full production capacity as soon as possible” for the Indonesian Shengtuo project.
Located at the Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi, the Indonesian Shengtuo project began trial production in June 2024 with a design capacity of 60,000 tons per year of lithium chemicals. It marks Chengxin’s first overseas lithium chemical production base, and is described by the company as the largest ore-based lithium extraction facility built outside China.
Chengxin holds a 65% stake in the estimated US$350 million project, with the remaining 35% owned by Tsingshan Holding Group, a major stainless steel and nickel producer.
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Zhou further described the project as a strategic milestone, adding that it would “significantly enhance the company’s ability to serve and support global customers.”
Despite these ambitions, the facility remained in trial operation through the end of 2024, with no revenue reported. The company is still undergoing customer qualification and export certification, which are required before shipments can begin. The plant is primarily aimed at serving international markets, with its commercial contribution expected to grow as full capacity ramps up.
The emphasis on “ensuring stable lithium ore supply” reflects a broader industry concern. Global lithium prices declined sharply in 2024, with battery-grade lithium carbonate prices falling over 60%, and lithium ore prices plunging nearly 74% year-on-year due to oversupply and softening demand.
Chengxin currently sources spodumene concentrate — the primary raw material for lithium chemicals — from its mines in China and Zimbabwe, and has signed long-term agreements with suppliers including Pilbara Minerals and DMCC. However, the company did not disclose any specific supply agreement tied directly to the Indonesian operation in the report.
As of year-end, PT Chengtok Lithium Indonesia reported total assets of approximately US$708 million and net assets of US$108 million. The company also capitalized US$3.8 million in interest expenses, reflecting the project’s capital-intensive nature.
Despite the lack of 2024 revenue, Chengxin reaffirmed its international strategy. With total lithium chemical capacity now at 137,000 tons per year, the company says the Indonesian facility will become a key driver in meeting overseas demand, particularly for the electric vehicle and energy storage sectors.
Editing by Reiner Simanjuntak
