JIANGSU Lopal Tech is considering raising about US$200 million for its Indonesian unit as it ramps up local production of materials used in electric-vehicle batteries, according to people familiar with the situation.
Lopal, a supplier to the world’s largest battery maker Contemporary Amperex Technology Co (CATL), is working with an adviser to gauge interest from potential investors, the people said, asking not to be identified discussing private information.
Deliberations are ongoing and may not lead to an agreement, the people said. A representative for Lopal declined to comment.
Lopal has said it expects to start production at its lithium-iron phosphate cathode materials plant in Kendal Industrial Park in Java this year. Total investment in the facility is forecast to be US$290 million, and it will have capacity for 120,000 tonnes of LFP cathode materials, according to Lopal’s website. The products are used for making lithium-ion batteries deployed in industries such as EVs and energy storage.
The Nanjing-based company, which posted a net loss of 1.5 billion yuan (S$278 million) in 2023 as lithium prices slid, filed an application to list in Hong Kong earlier this year, with Guotai Junan Securities and Halcyon Capital as joint sponsors.
Lopal’s shares are down 44 per cent this year after sliding 46 per cent in 2023, trading at 6.95 yuan apiece as of Thursday (Jul 25) in Shanghai. They reached as high as 71.04 yuan a share at their peak in 2021. Lopal now has a market value of about US$545 million. BLOOMBERG
