LG Energy Solution Invests in Lopal’s Indonesian LFP Plant to Strengthen Global Battery Supply Chain

LG Energy Solution (LGES)

$15.97 Million Investment Secures Access to 30,000t/year of Lithium Iron Phosphate Cathode Material in Phase 1

LG Energy Solution Expands LFP Footprint Through Strategic Investment in Indonesia

South Korea’s LG Energy Solution (LGES) has invested $15.97 million in Chinese firm Lopal Tech’s lithium iron phosphate (LFP) plant located in Indonesia. The deal grants LGES a 20% equity stake in PT LBM Energi Baru Indonesia, a third-tier subsidiary of Lopal.

The LFP facility, currently under Phase 1 development, aims to produce 30,000 tonnes per year of LFP cathode material. Phase 2 will triple that output to 90,000 tonnes. LGES’ funding is dedicated to Phase 1, aligning with its efforts to secure a diversified and stable supply of LFP materials.

LFP Demand Soars Amid EV Market Expansion

This strategic move reflects LGES’ growing interest in LFP chemistry, which is increasingly favored for affordable and long-range electric vehicles (EVs). In 2024, LGES also signed a long-term purchase agreement with Changzhou Liyuan, a Lopal subsidiary, for 160,000 tonnes of LFP cathode materials over five years.

The Indonesia-based facility enhances LGES’ global supply flexibility, enabling localized sourcing near key Southeast Asian and global markets. Moreover, Lopal’s credibility in the market has been reinforced by its five-year LFP supply contract with Ford, signed in January.

Regional Investment Strengthens Battery Industry Integration

LGES’ equity investment not only diversifies its raw material sourcing but also aligns with Indonesia’s ambitions to become a global battery manufacturing hub. The Southeast Asian nation has drawn increasing interest due to its abundant nickel and favorable investment policies.

This development highlights LGES’ proactive strategy in building a vertically integrated battery value chain to support global EV and energy storage system (ESS) markets.