INDUSTRY.co.id - Kendal - PT LBM Energi Baru Indonesia officially operates in Indonesia, precisely in the Kendal Special Economic Zone, Central Java. This factory is the result of collaboration between PT LBM Energi Baru Indonesia and the Indonesia Investment Authority and BRV Capital Management from South Korea.

The increasing need for the most important component in the electric car ecosystem, namely LFP (Lithium Ferro-Phosphate), is the driving factor for the construction of LBM's Lithium Cathode material factory.

This inauguration started the operation of the first phase of the PT LBM Energi Baru Indonesia factory. After this, LBM will complete their second phase at the end of 2025. The total investment disbursed by LBM reached USD 350 million, divided into phase-1 of USD 100 million and phase-2 of USD 250 million.

Total LBM production in the first phase will reach 30,000 tons, while the second phase is targeted to reach 90,000 tons per year. Thus, LBM is targeted to become the second largest LFP cathode producer in the world after China with a total production capacity of 120,000 tons per year.

The Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, was also present at the inauguration event today. According to him, current ilization is not just words, but a big strategy to accelerate Indonesia's progress, especially in sectors that will dominate the future, such as the electric vehicle (EV) ecosystem.

"With the establishment of this factory, it is hoped that it can play an important role in meeting global demand for LFP batteries, which is driven by the increasing penetration of electric vehicles (EVs) throughout the world." said Coordinating Minister Luhut at the inauguration of the PT LBM Energi Baru Indonesia factory at KEK Kendal, Tuesday (8/10/2024).

With superior performance and stable quality, LBM can supply its products to various world-leading lithium battery manufacturers such as LGES, CATL, Sunwoda Electronic, Rept Battero, and Jiddan New Energy Technology. And has won the trust of car manufacturers such as Geely, GAC, Wuling and Li Auto.

Then, through exports aimed at various countries such as America, Europe, Japan and Korea, PT LBM Energi Baru Indonesia's revenue is targeted to reach USD 1.2 billion per year.

"In addition to addressing the need for LFP, the presence of this factory is also expected to increase Indonesia's foreign exchange, create 2,130 jobs with 90% local workforce, as well as support Indonesia's role in the Global LFP battery value chain, and become a global player in the electric vehicle ecosystem" said Shi Jun Feng as CEO & President Director of LBM.

LBM has a vision to strengthen economic resilience and encourage clean energy solutions in Indonesia. On the other hand, Indonesia is also committed to creating a healthy investment climate that provides benefits and comfort for investors.

Juliani Kusumaningrum as Head of Sales Marketing in the Kendal Special Economic Zone, explained that LBM will receive several incentives from the investments they make.

"With the registration of PT LBM Energi Baru Indonesia as a business actor in the Kendal SEZ, there are several tax facilities such as reductions in corporate income tax in the form of tax holidays or tax allowances, exemptions from VAT, import duties and import taxes that LBM can enjoy. "Apart from that, there is a fully funded facility in the form of workforce recruitment, namely the Link & Match program which can be used by LBMs to get trained workers that suit their needs." Juliani said.

(SOURCE)