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The first phase of production and facility expansion plans production of Lithium Iron Phosphate (LFP) cathode material by PT LBM Energi Baru Indonesia launched on Tuesday October 8th 2024. (Photo : Kemenkomarves) - 

VOInews, Kendal : Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan inaugurated the start of the first phase of production and facility expansion plans production of Lithium Iron Phosphate (LFP) cathode material by PT LBM Energi Baru Indonesia, a project realized through a strategic investment partnership plan between the consortium

Indonesia Investment Authority (INA) and Changzhou Liyuan New Energy Technology Co., Ltd. (Changzhou Liyuan), one of the world's largest LFP manufacturers and suppliers. this investment is expected to play an important role in meeting global demand for LFP batteries, driven by the increasing penetration of electric vehicles (EVs) worldwide.

“As President Joko Widodo often says, Indonesia cannot again just being an exporter of raw materials. We must create added value in the country itself, building a strong downstream industry, and positioning itself as a key player in global supply chain. Downstreaming is not just words, but a big strategy to speed things up Indonesia's progress—especially in the sector that will dominate the future: the ecosystem "electric vehicles, Electric Vehicles (EV)," said Coordinating Minister Luhut.

This facility, located in the Kendal Industrial Park (KIP) - one of the largest industrial complexes in Indonesia with Special Economic Zone (KEK) status - is projected to become the world's largest LFP Cathode manufacturer outside China. Planned joint investments amounting to USD 200 million aims to increase production capacity from 30,000 tons in phase I, which is currently in pilot production, to 90,000 tonnes in phase II, which is expected to begin in 2025.

According to a release received by Voice of Indonesia on Tuesday October 8th 2024, LFP is one of the two main chemicals in lithium-ion batteries, alongside Nickel Cobalt Manganese (NCM). Known for its cost effectiveness, LFP is perfect for EVs and energy storage system.

Based on Bain's study of the EV Battery Ecosystem 1, demand global batteries are expected to grow approximately fourfold between 2023 and 2030, driven by increasing EV adoption, positions LFP to play a role important in meeting this demand.

By 2030, NCM is projected to represents about 50% of lithium-ion battery demand, while LFP is expected to accounted for about 35%, with both expected to remain central
future growth of the battery industry.

This strategic partnership focuses on LFP cathode materials that represent the highest added value in the battery value chain, thereby enabling these facilities to capitalize on opportunities presented by this growing market. In 2030, Indonesia is expected to serve an approximately USD 10 billion market in LFP cathode active materials, so that it can make a meaningful contribution to the global transition towards clean energy//VOI