China Bohai Bank contributes to RMB 1.25 billion syndicated loan for Lithium Chemical Production Facility Project

Project narrative

In 2023, Pt. ChengTok Lithium Indonesia Co., Ltd. — a special purpose vehicle and joint venture of Chengxin Lithium Energy Group (65% equity stake) and Singapore-registered Stellar Investment Pte. Ltd. (35% equity stake) — signed an RMB 1,254,576,800 syndicated term loan (buyer’s credit) agreement with the Sichuan Branch of China Construction Bank Corporation and China Bohai Bank for the Lithium Chemical Production Facility Project. The borrowing terms of the loan are unknown. However, it is known that the loan was backed by a Sinosure credit insurance policy. The purpose of the project was to construct a production facility — with the capacity produce the lithium chemicals used in electric vehicle (EV) batteries — in Morowali Industrial Park within Central Sulawesi Province. Upon completion, the facility was expected to have the capacity to produce 50,000 tons of lithium hydroxide and 10,000 tons of lithium carbonate each year. Trial production commenced on June 11, 2022. Full production commenced in June 2023.