By Dominikus
LG Energy Solution Ltd. (LGES) has acquired a 20% stake in PT LBM Energi Baru Indonesia, a subsidiary of Jiangsu Lopal Tech Co., Ltd., through a US$ 15.97 million cash investment, according to a Jiangsu Lopal's recent announcement. The move strengthens LGES’s upstream access to lithium iron phosphate (LFP) cathode materials amid growing global battery demand.
The investment is directed toward the first phase of Lopal’s LFP project located at the Kendal Special Economic Zone (SEZ) in Central Java Province, Indonesia. The Phase I plant, with a capacity of 30,000 tons per year, is already constructed and operated by PT LBM Energi Baru Indonesia. Following the issuance of new shares, Lopal’s Singapore-based entity, LBM New Energy (AP) Pte. Ltd., now holds nearly 80% of the company, while LGES holds 20%, and LBM New Energy Singapore Pte. Ltd. retains 0.01%.
Lopal Tech had previously disclosed in January that the 120,000-ton project would be split into two phases. The remaining 90,000-ton Phase II will be developed under a new project company to be established in the same area, with registered capital of Rp 30 trillion (approximately RMB 135 million). LGES’s current investment focuses only on the Phase I entity, but the shareholders agreement allows for future participation in the second phase.
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The share subscription agreement and shareholders agreement with LGES were signed on February 21, 2025, giving LGES a board seat, investment protection clauses, and the right to convert its stake into IPO shares should Lopal pursue a listing of LBM New Energy (AP). The agreement also includes a put option mechanism tied to compliance with U.S. Foreign Entity of Concern (FEOC) regulations.
Just weeks earlier, on February 11, 2025, PT Akasya Investasi Indonesia (INA)—a subsidiary of Indonesia’s sovereign wealth fund—and AISIS Alliance L.P. jointly invested US$ 200 million in cash into LBM New Energy (AP) Pte. Ltd., the Singapore-based parent of the Indonesian operating company. INA contributed US$149.79 million, while AISIS invested US$ 50 million. The investment was purely financial, with no disclosed operational involvement, and served to strengthen the capital structure ahead of the LGES strategic entry.
Editing by Reiner Simanjuntak
