RI fires up LFP manufacturing despite lack of lithium reserves

JakartaPost-Oct 17

Indonesia is one step closer to its goal of becoming an electric vehicle manufacturing hub after inaugurating its first lithium iron phosphate (LFP) factory earlier this month, but analysts say the country’s heavy reliance on Chinese investment in the industry could complicate efforts to sell the cathode material in Western markets. Equipped with ample expertise from their home market, Chinese companies can fill the gaps in Indonesia’s budding EV ecosystem when it comes to LFP technology. The new plant, which is operated by Chinese-Indonesian consortium PT LBM Energi Baru Indonesia in the Kendal Industrial Park (KIP) in Central Java and cost US$200 million to build, is Indonesia’s first facility for making LFP, a key material in the production of EV batteries of the lithium-ion type. Ian Satchwell, an adjunct professor at the University of Queensland, said Indonesia, which has no significant lithium reserves itself, may nevertheless establish an LFP manufacturing industry by importing the mineral from other countries, such as Australia, or recycling used lithium-ion batteries. “LFP output may be absorbed domestically if Indonesia’s battery and EV industries grow as hoped. The balance would likely go to China,” he told The Jakarta Post on Tuesday. Read more at:

https://www.thejakartapost.com/business/2024/10/17/ri-fires-up-lfp-manufacturing-despite-lack-of-lithium.html.