Changzhou Liyuan's Indonesia Project Phase II Commences, Boosting the Development of the LFP Market [SMM Analysis]

Published: Feb 9, 2025 23:11

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[Changzhou Liyuan Indonesia Phase II Project Commences, Boosting the Development of the LFP Market] On February 2, 2025, Changzhou Liyuan New Energy Technology Co., Ltd. officially broke ground on its Phase II project in the Kendal Economic Zone, Semarang, Indonesia, marking a new stage in the company's overseas market expansion.

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SMM, February 9—On February 2, 2025, Changzhou Liyuan New Energy Technology Co., Ltd. officially broke ground on its Phase II project in the Kendal Economic Zone, Semarang, Indonesia, marking a new stage in the company's overseas market expansion.

Changzhou Liyuan is the first domestic LFP enterprise to plan capacity overseas. Since 2021, it has been building a production site in Indonesia, which has now become a key area for its overseas expansion. Previously, the Phase I project in Indonesia was successfully completed and put into operation in 2024, with the first batch of products shipped in January 2025. The advancement of the Phase II project will further integrate local resources, optimize Changzhou Liyuan's global capacity layout, and enhance its product supply capability and competitiveness in the international market.

The Phase II project is expected to have a planned capacity of 90,000 mt and is scheduled to commence production in 2025. Currently, the Indonesian Liyuan plant has the capability to produce fourth-generation high-compaction products and is developing low-temperature spherical T-series products for low-temperature environments, which have entered the production planning stage.

In terms of market layout, Changzhou Liyuan's parent company, Lopal, has long been strategizing. Through the release of overseas capacity and differentiated high-end products, Lopal is striving to create new profit growth points. In December 2024, Changzhou Liyuan revised its agreement with LG Energy Solution to supply 260,000 mt of LFP cathode materials from 2024 to 2028. In January 2025, Liyuan (Asia-Pacific) signed a supply agreement with Blue Oval, a wholly-owned subsidiary of Ford Motor Company, to supply LFP cathode materials from 2026 to 2030.

According to market analysis, with the increasing demand for fast-charging batteries and high-capacity battery cells, the demand for high-compaction cathode materials is expected to continue growing in 2025. This type of product may face a supply-demand balance or even a shortage, leading to higher product premiums. Lopal is expected to report a net loss of 595 million to 697 million yuan in 2024, but this represents a significant narrowing of losses compared to 2023. The market anticipates that with the release of overseas capacity and the stabilization of early investments and material prices, Lopal's performance is likely to improve further in 2025.

SMM New Energy Research Team

Cong Wang 021-51666838

Xiaodan Yu 021-20707870

Rui Ma 021-51595780

Ying Xu 021-51666707

Disheng Feng 021-51666714

Yujun Liu 021-20707895

Yanlin Lü 021-20707875

Zhicheng Zhou 021-51666711

Haohan Zhang 021-51666752

Zihan Wang 021-51666914

Xiaoxuan Ren 021-20707866

Yushuo Liang 021-20707892

Jie Wang 021-51595902

Yang Xu 021-51666760

Boling Chen 021-51666836

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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