JAKARTA (Oct 9): Indonesia’s first phase of the lithium iron phosphate (LFP) cathode facility, backed by a joint investment of US$200 million (RM856 million) by PT LBM Energi Baru Indonesia, has been launched to meet the growing global demand for LFP batteries, particularly in the electric vehicle (EV) sector.

The facility, inaugurated by Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, is located in Kendal Industrial Park, Central Java.

This project is part of a strategic investment collaboration with the republic’s sovereign wealth fund Indonesian Investment Authority, and China-based Changzhou Liyuan New Energy Technology Co, Ltd, which is a leading global supplier of LFP.

In a statement on Wednesday, Luhut said, “Indonesia must no longer be merely an exporter of raw materials. We must create added value domestically, build a robust downstream industry, and position ourselves as key players in the global supply chain”.

The facility’s production capacity is projected to increase from 30,000 tonnes to 90,000 tonnes by 2025, positioning LFP as a crucial, cost-effective component for EVs and energy storage systems.

LFP is one of the main components in lithium-ion batteries, along with nickel cobalt manganese.

The project is expected to create over 2,000 jobs, and is anticipated to cater to a global battery market worth around US$10 billion by 2030.

“This is not merely a factory; it is also the foundation of an integrated EV ecosystem in Indonesia.

“Through the refinement of the lithium battery production chain, no less than three million units of EVs worldwide will have their lithium battery needs fulfilled by the industry in Indonesia,” Luhut added.

Uploaded by Liza Shireen Koshy