[LBM TECH] LBM holds a $200 million investment signing ceremony with Indonesia's sovereign fund

On the morning of October 8th, LBM Indonesia, the world's first overseas lithium iron phosphate factory, held a grand investment signing ceremony at the Kendar Industrial Park in Semarang, Indonesia. Indonesian sovereign wealth fund, Indonesia Investment Agency (INA), and other joint investors signed a $200 million investment intention letter with LBM on site. Minister of Marine and Investment Coordination, Luhut, CEO of INA, and Chairman of LOPAL TECH, Shi Junfeng, attended the signing ceremony. This investment plan will expand the production capacity of LBM's Indonesian factory from the current phase of 30000 tons per year to 120000 tons per year by 2025, making it the world's largest lithium iron phosphate cathode material manufacturing factory after China.

The Indonesia Investment Authority (INA) is a national sovereign wealth fund established by the Indonesian government in 2021. Its mission is to increase investment, support the country's sustainable development, and collaborate with leading global and domestic investment institutions in strengthening Indonesia's advantages and providing the best risk adjusted returns; According to reports, the Indonesian Investment Authority plans to invest a total of $1 billion in areas such as electric vehicle ecosystems and geothermal energy this year.

LBM is currently one of the top manufacturers of lithium iron phosphate cathode materials in terms of global market share. It has established long-term cooperative relationships with many mainstream global new energy battery and automotive companies such as CATL and LGES. Currently, it has five major production bases in China, including Changzhou in Jiangsu, Tianjin, Heze in Shandong, Xiangyang in Hubei, and Suining in Sichuan; 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. In February of this year, LBM signed a long-term supply contract for lithium iron phosphate cathode materials with LGES in South Korea. The two parties agreed that from this year to 2028, LBM will sell a total of 160000 tons of lithium iron phosphate cathode material products to LGES, making LBM the first Chinese lithium iron phosphate material enterprise to win a large order from a well-known overseas battery manufacturer.

In his speech at the ceremony, Shi Junfeng, Chairman of LOPAL TECH, stated that LBM's Indonesian factory will be the world's first lithium iron phosphate cathode material enterprise to be put into production outside of China, which is of great significance for improving the supply guarantee of the global new energy vehicle industry chain; At the same time, the investment intention signing between LBM and Indonesia's sovereign wealth fund INA is another important achievement of China Indonesia comprehensive strategic cooperation, fully reflecting INA's foresight and long-term layout in the global new energy vehicle industry investment map as Indonesia's national sovereign fund; Looking to the future, LBM will make its due contribution to the takeoff of the new energy vehicle industry in Indonesia and even globally.

According to the authoritative institution SPIR, the global lithium battery market demand will exceed 5100GWh by 2030, with the demand for lithium iron phosphate batteries leading the way, expected to reach 3000GWh, accounting for over 60%. With the continuous increase in the global popularity of electric vehicles, the expansion of the second phase project of LBM Indonesia factory will play a key role in meeting the demand for lithium iron phosphate cathode materials in the international market.

As the world's largest nickel producer and second largest cobalt producer, Indonesia has significant influence on the global electric vehicle market. The Indonesian government has positioned the electric vehicle industry as one of the 18 pioneer industries. According to the Indonesian government's plan, by 2030, it will have an annual production capacity of 500000 electric vehicles, and there will be at least 2.2 million electric vehicles domestically. At present, vehicle manufacturers such as Wuling, Sailis, Chery, FAW, BYD, Nezha, Great Wall, and GAC Aion from China, power battery manufacturers such as CATL, EVE Energy, and Guoxuan High Tech, as well as material manufacturers such as Qingshan Holdings, Zhongwei Group, and BTR, have all entered the Indonesian new energy vehicle market. The LBM Indonesia project fills the gap in the field of lithium iron phosphate cathode materials in Indonesia's new energy vehicle industry, and adds an important link to the improvement of Indonesia's new energy vehicle industry chain.