DBS launches US$625m project financing Indonesia's first high-pressure acid leach smelter

DBS announced on Thursday that it is jointly leading a consortium of nine banks to launch a US$625 million project financing structure for Indonesia's first high-pressure acid leach (HPAL) smelter, PT Halmahera Persada Lygend (PT HPAL).

PT HPAL is the first in Indonesia to utilise HPAL technology to manufacture key raw materials for electric battery manufacturing, including nickel-cobalt hydroxide precipitate and nickel sulphate, DBS said in a press statement.

Given the growing global demand for electric vehicles (EVs) and the corresponding increase in demand for storage and battery metals, DBS highlighted the integral role HPAL will play in the EV supply chain globally.

Tan Su Shan, DBS group head of institutional banking and president commissioner for PT Bank DBS Indonesia, noted that the transaction supports Indonesia's ambitions for the EV and manufacturing industry.

"With Indonesia holding the largest share of the world's nickel reserves, we're excited to support the country's plans to develop a global EV supply chain onshore by helping to advance companies in high-growth industries like PT HPAL that are also mindful of their environmental, social and governance impact," she said.

DBS has committed to finance S$50 billion in renewable, clean energy and green projects by 2024, more than twice its earlier target of S$20 billion. The bank closed S$9.6 billion in sustainable financing transactions in 2020, up 81 per cent from the previous year.