[LBM TECH] The total amount is 260000 tons, with a total value of billions! The world's largest lithium iron phosphate order this year fell to LBM
Release time:
2024-12-24
On the evening of December 24th, LOPAL TECH announced that LBM and LBM (AP), subsidiaries of Longpan, have revised the Long Term Supply Agreement signed by both parties in February this year with LGES. The most notable change after the revision is that LBM's sales of lithium iron phosphate cathode materials to LGES before 2028 have increased from 160000 tons to 260000 tons. According to current market prices, the overall market value of this latest order is close to RMB 10 billion, making it the largest transaction contract signed in the global lithium iron phosphate market this year.
In 2024, the global new energy vehicle market is expected to continue to soar, with overall sales of new energy vehicles expected to exceed 17 million units and domestic sales of new energy vehicles expected to exceed 12 million units; The billion dollar order between Lithium Source and LGES, which was announced at the end of the year, is a vivid footnote to the booming global new energy market.
LBM, a subsidiary of LOPAL TECH, is currently one of the top manufacturers of lithium iron phosphate cathode materials in the global market share. It has established long-term cooperative relationships with multiple mainstream global new energy battery and automotive companies such as CATL and LGES, and currently has five major production bases in China.
Overseas layout shows initial results
At the same time, another change in the supply agreement is the addition of LBM New Energy (AP) Pte. Ltd. as a new enterprise in addition to the original LBM. It is understood that the main producer of LBM (AP) is LBM's lithium iron phosphate production base located in Semarang, Indonesia.
In November 2021, LBM announced the establishment of a lithium iron phosphate production base in Indonesia, with a total planned capacity of 120000 tons of lithium iron phosphate, becoming the first Chinese lithium iron phosphate cathode material enterprise to go abroad. At present, the first phase of LBM (AP) with an annual production capacity of 30000 tons has been completed, and the second phase with a production capacity of 90000 tons will be officially put into operation in 2025.
At the same time, LBM (AP) officially signed a contract with the Indonesian Investment Agency (INA) this month to receive a $200 million investment from Indonesia's sovereign wealth fund and joint investors. As the fourth most populous country in the world and an important member of the global new energy industry chain, the Indonesian "national team" will provide real financial support for lithium sources, undoubtedly playing an important role in the future global business expansion of lithium sources.
The globalization trend of lithium iron phosphate is unstoppable
Due to its higher cost-effectiveness compared to NCM lithium batteries, lithium iron phosphate (LFP) batteries have quickly become mainstream in the Chinese market in just a few years. Entering 2024, more and more overseas car companies are also choosing LFP batteries. Renault stellantis、 Several European car companies, including General Motors, Hyundai, and Volkswagen, have announced their intention to introduce LFP batteries into their entry-level models. As a leading brand in the overseas power battery market, LGES announced its plan to double its revenue within five years at a strategic press conference held in October this year. Last year, LG New Energy's revenue was 33.75 trillion Korean won (approximately 176.9 billion yuan). Based on this calculation, its revenue target for 2028 will reach RMB 353.8 billion. One of the key steps to achieve this goal is the widespread adoption of lithium iron phosphate batteries. Therefore, the billion dollar orders between LGES and LBM also indicate that the globalization trend of lithium iron phosphate will be unstoppable by 2025.
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2025-02-20
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