LOPAL TECH to Invest RMB1.09 Billion in 120,000-Tonne LFP Cathode Plant in Indonesia

Jiangsu Lopal Tech. Group Co., Ltd. (LOPAL TECH) has approved an outbound expansion plan involving a US$160 million (approximately RMB1.09 billion) investment to build the “Indonesia LBM Phase III Project” through its controlled grandchild subsidiary, LBM NEW ENERGY (AP) PTE. LTD., and its wholly owned unit, PT LBM ENERGI BARU INDONESIA BATANG (“LBM Indonesia [Batang]”).

The project will install production lines with 120,000 tonnes of annual capacity for second- and third-generation lithium iron phosphate (LFP) cathode materials at the Batang Integrated Industrial Park in Central Java, Indonesia. Construction is slated to begin in July 2026, with an estimated 12-month build-out. Management is targeting an internal rate of return of 24.38%.

Funding of the RMB1.09 billion capex will be met through LBM (AP)’s internal resources, bank loans and other self-financing channels, with capital injected into LBM Indonesia (Batang) in tranches. Based on its indirect ownership, LOPAL TECH’s attributable investment is projected at about RMB377.31 million.

The board cleared the proposal at its 10th meeting of the fifth session on 9 June 2026. Final implementation is contingent on shareholder approval at an upcoming general meeting and on completing regulatory filings in both China and Indonesia.

Management positions the investment as a strategic move to capture accelerating overseas demand for cost-competitive, high-safety LFP batteries driven by the global expansion of electric vehicles and energy-storage applications. The company cites established customer relationships and prior experience in overseas plant construction as key enablers.

Key risks highlighted include: 1. Construction and approval uncertainties in China and Indonesia that could delay commissioning. 2. Intensifying global competition as other lithium-battery material suppliers add capacity abroad. 3. Potential variability in project returns due to macro-economic, policy and market factors. 4. Exposure to foreign-exchange fluctuations during investment and operating phases.

Including this initiative, LOPAL TECH’s outbound investments over the past 12 months have reached 10% of its latest audited net assets, while board-approved but not yet shareholder-approved overseas commitments equal 50% of net assets. Management does not expect the new project to have a material impact on the group’s 2026 revenue or net profit.