Kendal SEZ Officially Becomes the First Electric Vehicle Battery Lithium Component Factory Location in Southeast Asia

July 13, 2023

Kendal, 13 July 2023 --- A groundbreaking event has been held for the construction of the PT LBM Energi Baru Indonesia Factory located in Kendal Industrial Park (Kendal SEZ), Central Java. PT LBM Energi Baru Indonesia is a subsidiary of the Singapore-based company LBM New Energy (AP) Pte Ltd which is also a subsidiary of Lopal Tech Company.

Lopal Tech which is the holding company of PT LBM Energi Baru Indonesia has been established since 2003, headquartered in Nanjing, Jiangsu, China. At the start of its business journey, Lopal Tech produced automotive spare parts such as lubricant oil and automotive chemicals. Then it developed into a leading provider of Green Energy and Green Chemical in the world with a total of 16 factories and 30 subsidiary companies.

The construction of the factory in Kendal is the first investment for Lopal and LBM in Southeast Asia. PT LBM Energi Baru Indonesia will produce LFP (Lithium Iron Phosphate) Cathode Material with a total production capacity of 120,000 tons of LFP. The factory being built has an investment value of up to USD 290 million or the equivalent of 4 trillion rupiah.

Soo as the President Director of PT LBM Energi Baru Indonesia said that the construction of this factory was driven by the increasing global demand for lithium ion batteries as a component of electric vehicles. This is in line with the current global community towards the use of green energy to reduce climate change. "We have great hope that the construction of this factory can be carried out according to the target, so that PT LBM Energi Baru Indonesia can start operating at the end of this year." said Soo

He also explained his reasons for choosing Indonesia as the location for their business expansion in Southeast Asia, "This is the first time for us to expand outside of China. We are very confident in choosing Indonesia, precisely in the Kendal Special Economic Zone. We see this based on the completeness of international standard infrastructure and the Special Economic Zone facilities provided such as tax holidays, free VAT, and import duties."

Later when it operates, the factory will absorb around 1,000 workers from the Kendal and surrounding areas. Stanley Ang as CEO & President Director of Kendal Industrial Park (Kendal SEZ) revealed that Kendal SEZ will participate in supporting the process of operating PT LBM Energi Baru Indonesia by assisting with the licensing process, searching for workers, to submitting fiscal facilities from SEZ.

Kendal Regent Dico M Ganinduto was also present and enthusiastically welcomed today's groundbreaking event. "We are proud that Kendal has been chosen as the location for the construction of the first LFP factory in Indonesia. Of course, this has had quite a big impact, especially for economic development in Kendal Regency, as well as the job opportunities for local people. We also hope that with this, Kendal can be increasingly looked at as an investment location in Central Java."