Lopal Tech Sells Stake in Indonesian Battery Plant
Lopal Tech plans to divest its 76% interest in a major Indonesian cathode plant to KINETIQ for $31.92 million.
Updated on Oct. 25, 2026 in Electric Vehicles
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Lopal Tech has announced a deal to sell its 76% equity interest in PT LBM to KINETIQ for US$31.92 million. The transaction removes the facility from Lopal Tech's consolidated financial statements upon completion.
Why it matters
The divestiture is designed to help PT LBM achieve Non-PFE status under the U.S. One Big Beautiful Bill Act. This status is intended to ensure continued supply of lithium iron phosphate cathode materials to North American customers.
The deal involves a 90,000-ton-per-year lithium iron phosphate cathode materials plant located in Indonesia. The divestment of the 76% stake will remove PT LBM from Lopal Tech's consolidated financial reporting.
The players
Lopal Tech
Lopal Tech is a technology company specializing in the production of chemicals and materials for the automotive and energy sectors.
KINETIQ
KINETIQ is the entity acquiring the majority equity interest in the Indonesian cathode production facility.
PT LBM
PT LBM is an Indonesia-based manufacturer of lithium iron phosphate cathode materials currently undergoing an ownership restructuring.
The details
The Indonesian plant produces high-capacity cathode materials essential for electric vehicle batteries. By transferring ownership, Lopal Tech aims to navigate complex international regulatory requirements regarding supply chain sourcing.
Timeline
October 22, 2026: Lopal Tech announced the planned sale of its stake in PT LBM.
Roadmap
This transaction follows the strategic compliance pattern established by the U.S. One Big Beautiful Bill Act. Companies are increasingly restructuring global assets to ensure their supply chains meet regional regulatory standards for electric vehicle battery materials.
This deal could ensure a steadier flow of battery materials for electric vehicles destined for North American showrooms. Buyers may eventually see more consistent vehicle availability as supply chains align with international manufacturing regulations.
The takeaway
Companies are reconfiguring their international holdings to adapt to evolving geopolitical trade policies regarding battery component sourcing. Investors and customers should monitor how these corporate shifts affect the long-term cost and accessibility of electric vehicle battery technology.
Further reading
Learn more about global supply chain shifts in Electric Vehicles.
Source note: This article includes information reported by Metal.
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