By Dominikus
CNGR Advanced Material Co., Ltd., a global leader in cathode precursor materials for lithium-ion batteries, is moving forward with ambitious plans to expand its manufacturing footprint, including a major new investment in Indonesia to develop nickel-based precursor cathode active material (pCAM) production.
According to the company's application proof submitted to the Hong Kong Stock Exchange, CNGR is executing a global growth strategy with a projected capital expenditure of approximately RMB7.6 billion (around US$1.05 billion). Of this total, around RMB5.7 billion (approximately US$790 million) has been allocated to new production lines in Indonesia, underscoring the country's central role in CNGR’s international roadmap. As of December 31, 2024, approximately RMB3.9 billion had already been invested
The planned expansion in Indonesia covers three key facilities: a high-grade nickel matte production line with a designed capacity of 40,000 metal tons, an electrolytic nickel production line with a capacity of 10,000 metal tons, both scheduled for completion by the end of 2025, and a new nickel-based pCAM production facility for ternary batteries with a designed capacity of 20,000 metal tons, expected to commence operations by the end of 2026
These projects are intended to complement CNGR’s existing operations in Indonesia, where the company already operates three nickel smelting and refining bases through subsidiaries including PT Nadesico Nickel Industry, PT Zhongtsing New Energy, and PT Debonair Nickel Indonesia. These industrial platforms currently produce key intermediate products such as nickel pig iron (NPI), low-grade nickel matte, and high-grade nickel matte, forming an essential part of CNGR’s vertically integrated supply chain for battery materials.
Read also: CNGR posts $5.62 billion in revenue as Indonesia becomes key nickel hub
CNGR’s document, issued in preparation for a secondary listing in Hong Kong, was filed by CNGR Advanced Material Co., Ltd., a company incorporated in China and already listed on the Shenzhen Stock Exchange under the code 300919. The group is led by Chairman and President Deng Weiming, who also heads the company’s Strategy and ESG Committee. Under Deng’s leadership, CNGR has secured the top global ranking for shipment volume of nickel-based and cobalt-based pCAM materials for five consecutive years since 2020.
Currently, CNGR operates five global production bases for new energy battery materials: four located in China covering all product categories, and one in Morocco focusing on nickel-based pCAM. In addition to the Indonesian project, CNGR is also planning to establish a new production facility in South Korea, specifically dedicated to nickel-based pCAM, with an investment value of around RMB1.9 billion (approximately USD260 million).
Indonesia holds strategic significance for CNGR's global expansion due to its abundant lateritic nickel reserves, which are crucial for the production of high-nickel batteries required for electric vehicles (EVs) and energy storage systems. By anchoring production facilities closer to upstream resources, CNGR aims to enhance cost efficiency, stabilize supply chains, and align itself with Indonesia's national policy to promote domestic nickel downstreaming.
As global demand for high-energy-density batteries intensifies, CNGR's expansion projects in Indonesia and South Korea are expected to significantly reinforce its capacity to supply battery manufacturers and EV companies worldwide. In 2024, overseas markets contributed 44.5% of CNGR’s total revenue, highlighting the company's transition into a truly international new energy materials enterprise.
With its upcoming Indonesian production facilities, CNGR is not merely adding capacity but is strategically entrenching itself in the global energy transition ecosystem — positioning itself as a critical supplier in the shift toward a decarbonized economy.
Editing By Reiner Simanjuntak
