DBS to finance Indonesia's first high pressure acid leach smelter

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The smelter will manufacture key components for the ongoing production of electric vehicles.

Along with eight other banks, DBS has launched a US$625m project financing structure for PT Halmahera Persada Lygend (PT HPAL).

PT HPAL is set to be Indonesia's first high pressure acid leach (HPAL) smelter, which will be used to manufacture nickel cobalt hydroxide precipitate and nickel suphate. Both products are key raw materials in electric battery manufacturing.

These batteries, in turn, are a key component in the production of electric vehicles (EVs).

"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 ESG impact," said Tan Shu Shan, Group Head of Institutional Banking and President Commissioner for PT Bank DBS Indonesia in a statement.

DBS was also appointed as one of the lead coordinators for the project financing facility.

The financial institution has commited to finance $50m in green projects by 2024.