(Bloomberg) -- Jiangsu Lopal Tech Co. is considering raising about $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. Ltd., 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 $290 million, and it will have capacity for 120,000 tons 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.
In February, Lopal said its unit received a 7 billion yuan ($970 million) order from South Korean battery maker LG Energy Solution Ltd. for 160,000 tons of LFP cathode materials to be delivered from this year to 2028. Its customers also include China’s Sunwoda Electronic Co. and EVE Energy Co.
The Nanjing-based company, which posted a net loss of 1.5 billion yuan ($207 million) in 2023 as lithium prices slid, filed an application to list in Hong Kong earlier this year, with Guotai Junan Securities Co. and Halcyon Capital Ltd. as joint sponsors.
Lopal’s shares are down 44% this year after sliding 46% in 2023, trading at 6.95 yuan apiece as of Thursday 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 $545 million.
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