LFP | LBM's First Overseas Lithium Iron Phosphate Plant Settles in Indonesia

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LFP | LBM's First Overseas Lithium Iron Phosphate Plant Settles in Indonesia

Date：2024-10-09

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Keyword tags： LFP Lithium Iron Phosphate

Changzhou Liyuan New Energy Technology Co., Ltd. (LBM), a subsidiary of Lopal Technology, announced on October 8th that its first overseas lithium iron phosphate (LFP) factory will be established in Indonesia.

LBM also held a grand investment signing ceremony with the Indonesia Investment Authority (INA), an Indonesian sovereign wealth fund, and other joint investors at the Kendal Industrial Park in Semarang, Indonesia, and signed a Letter of Intent for a $200 million investment. This investment plan will expand the production capacity of LBM's Indonesian factory from the current Phase I annual output of 30,000 tons to an annual output of 120,000 tons by 2025, making it the company's largest lithium iron phosphate cathode material manufacturing factory outside of China.

The Indonesia Investment Authority (INA), established by the Indonesian government in 2021, is a national sovereign wealth fund tasked with increasing investments to support the country's sustainable development and cooperating with leading global and domestic investment institutions in areas that strengthen Indonesia's advantages and provide the best risk-adjusted returns. It is reported that this year, the Indonesia Investment Authority plans to invest a total of $1 billion in fields such as the electric vehicle ecosystem and geothermal energy.

LBM is currently a leading global lithium iron phosphate cathode material manufacturer with a significant market share, and has established long-term cooperative relationships with several mainstream global new energy battery companies and car manufacturers, such as CATL and LG Energy Solution. The company currently has five major production bases in China.

In November 2021, LBM announced plans to establish a lithium iron phosphate production base in Indonesia, with a total planned capacity of 120,000 tons of lithium iron phosphate, making it the first Chinese lithium iron phosphate cathode material enterprise to expand overseas.

In February of this year, LBM also signed a long-term supply contract for lithium iron phosphate cathode materials with LG Energy Solution. The two parties agreed that from this year to 2028, LBM will sell a total of 160,000 tons of lithium iron phosphate cathode material products to LG Energy Solution, making LBM the first Chinese lithium iron phosphate material enterprise to win a substantial order from a well-known overseas battery manufacturer.

According to industry statistics, by 2030, the global demand for lithium-ion batteries will exceed 5,100 GWh, of which the demand for lithium iron phosphate batteries is expected to account for the largest share, reaching 3,000 GWh, or over 60%. As the global electric vehicle adoption rate continues to rise, the expansion of the second phase of LBM's Indonesian factory will play a key role in meeting the international market demand for lithium iron phosphate cathode materials.

As the world's largest producer of nickel and the second-largest producer of cobalt, Indonesia has significant influence on the global electric vehicle market. The Indonesian government has designated the electric vehicle industry as one of its 18 pioneer industries. According to the government's plan, by 2030, Indonesia will have an annual production capacity of 500,000 electric vehicles and will have at least 2.2 million electric vehicles within the country. Currently, several Chinese electric vehicle, lithium-ion battery, and battery material companies have invested in Indonesia, with the LBM Indonesian project filling the gap in the country's production of lithium iron phosphate materials.

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