Lonpont Technology's Lithium Iron Phosphate Plant Phase I Commences Production in Indonesia

On October 8, 2024, LBM Phase I, a lithium iron phosphate cathode material plant invested by Longfan Technology in Indonesia, was formally put into production in Kendall Special Economic Zone in the Central Java Industrial Belt of Indonesia. The Minister of Indonesia's Hai Tong Luhut, President of Longfan Technology and LBM, Mr. Shi Junfeng, etc., participated in the commissioning ceremony.

LBM Indonesia plant is a subsidiary of Lonpac Technology established in Indonesia through Changzhou Lithium Source in February 2022, with a total investment of USD 350 million, of which USD 100 million is invested in the first phase, with an annual output of 30,000 tons of lithium iron phosphate, and USD 250 million is invested in the future second phase, with an annual output of 90,000 tons, and the total capacity will reach 120,000 tons per year after the completion of the second phase. After the completion of the second phase, LBM Indonesia will become the second largest lithium iron phosphate anode manufacturer in the world after China, with a total production capacity of 120,000 tons per year.

With excellent performance and stable quality, LBM products can be supplied to a number of global leading Li-ion battery manufacturers such as Ningde Times, Xinda Electronics, LG Battery and so on. It has also won the trust of automobile manufacturers such as Geely, GAC, Wuling and Ideal Auto. By targeting exports to countries such as the United States, Europe, Japan and South Korea, LBM's revenue is targeted to reach US$1.2 billion per year.

Luhut, Indonesia's Minister of Hai Tuong, said that as the popularity of electric vehicles (EVs) continues to increase globally, it is hoped that global demand for lithium iron phosphate batteries will be met with the commissioning of the LBM plant.

LBM's CEO and President, Mr. Shi Junfeng, said the plant not only supports Indonesia's role in the global lithium iron phosphate battery value chain, but also brings more than 2,000 jobs and significant foreign exchange earnings to the country.

In the past decade, Indonesia's Joko government has insisted on the downstream industrialization policy of industrialization and minerals, and the investment in Indonesia's nickel industry by Chinese enterprises led by Qingshan has not only given China a huge advantage in the supply chain of stainless steel and raw materials for new energy batteries, but also attracted more and more Chinese upstream and downstream enterprises of new energy batteries, such as NINGDETAE Times, BYD, GXG, Ruipu Ranjun, LONGBAN, BETHLEY, Hailiang, Nord etc., as well as at least 9 major Chinese new energy vehicle enterprises to land in Indonesia. Hailiang, Nord, etc., as well as at least 9 major Chinese new energy vehicle enterprises to land in Indonesia, to build a whole industry chain from the upstream battery raw materials, battery production, to the downstream electric vehicle, so that Indonesia has become the ASEAN's manufacturing center of electric vehicles, and at the same time, to improve the globalization of China's new energy industry layout.