CATL (03750) Signs Equipment and Service Procurement Agreement

Stock News
Oct 20

CATL (03750) announced that on October 20, 2025, it reviewed and approved the establishment of an equipment and services procurement agreement between Hong Kong Times, CATI, and CATIB to meet the production needs of its overseas battery factory in Indonesia. CATIB will procure battery production-related equipment from Hong Kong Times and site services related to the equipment from CATI. The agreement is expected to be signed by October 31, 2025, following the completion of internal procedures by the signing parties. Under the equipment and service procurement agreement, CATIB will purchase battery production equipment and accessories for its Indonesian battery factory from Hong Kong Times, including but not limited to cell production line equipment; module, battery pack, housing, and casing production line equipment; as well as supporting equipment. It will also procure on-site services related to the equipment from CATI, including but not limited to equipment installation and debugging; manpower support; and equipment connection and movement. The total amount involved is $131 million, which includes $109 million to be paid to Hong Kong Times for equipment procurement and $22.1163 million (equivalent to 3.57247 trillion Indonesian rupiah) to CATI for service procurement. As a leading enterprise in the new energy industry, the company possesses rich manufacturing experience and solid technical accumulation in the battery manufacturing field, with cost advantages in supply chain management and centralized procurement. The Indonesia battery factory is an important project in the group's overseas strategic layout. To ensure its smooth progress, centralized procurement of the required production equipment and related services will leverage the company's scale advantages in supply chain management and centralized procurement, allowing for a more competitive cost of equipment while ensuring the technological advancement and stability of the equipment. This will effectively enhance the production efficiency of the Indonesian battery factory and further improve the company's overall market competitiveness, aligning with the interests of the company and all shareholders.

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