On Tuesday, 8 October 2024, Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, inaugurated the first phase of lithium iron phosphate (LFP) cathode material production by PT LBM Energi Baru Indonesia at the Kendal Special Economic Zone (SEZ), Central Java. This milestone further strengthens Indonesia’s electric vehicle (EV) ecosystem. Cathodes, along with anodes and electrolytes, are key components of lithium batteries. Earlier, President Joko Widodo inaugurated an anode factory at the same SEZ in August 2024. According to Luhut, this development positions Indonesia to become a major player in the global EV component market. “Indonesia must no longer be a mere exporter of raw materials. We need to build a strong downstream industry to create added value and solidify our role in the global supply chain, especially in the EV sector,” he remarked.
The PT LBM Energi Baru Indonesia facility is part of a strategic investment partnership between the Indonesia Investment Authority (INA) and Changzhou Liyuan New Energy Technology. The total investment in the project amounts to USD 350 million, with projected annual revenues of USD 1.2 billion from exports to the Americas, Europe, and Asia. Luhut highlighted that this collaboration will establish Indonesia as a leader in LFP cathode production outside China. The factory, with an annual production capacity of 120,000 tons by the end of 2025, will supply batteries for at least 3 million EVs worldwide. In addition to meeting global LFP demand, this project is set to enhance Indonesia's role as a hub for clean energy innovation while creating over 2,000 jobs, 92% of which are filled by local workers.
