Lopal Tech Sells Indonesian Plant Stake to Bolster Supply
The move aims to help the plant qualify for key North American electric vehicle supply standards.
Updated on Oct. 25, 2026 in Electric Vehicles
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Lopal Tech is divesting its 76% stake in a major Indonesian lithium iron phosphate cathode facility for $31.92 million. This move aims to adjust the ownership structure to secure supply chains for North American electric vehicle manufacturers.
Why it matters
The divestment is designed to help the Indonesian plant qualify for Non-PFE status under the U.S. One Big Beautiful Bill Act. By meeting these regulatory requirements, the facility intends to keep its cathode materials eligible for North American EV production.
The deal involves a 76% equity interest in PT LBM, which operates a 90,000-ton-per-year cathode materials plant in Indonesia. The sale price is set at US$31.92 million.
The players
Lopal Tech
A developer and manufacturer focused on chemical materials used in the electric vehicle battery supply chain.
KINETIQ
The acquiring entity purchasing the controlling interest in the lithium iron phosphate cathode production facility.
The details
The transaction functions by reducing Lopal Tech's ownership stake to allow the Indonesian site to meet specific regulatory criteria. Once complete, PT LBM will no longer appear on Lopal Tech's consolidated financial statements. The shift is calculated to navigate the requirements of the U.S. One Big Beautiful Bill Act, ensuring materials continue to flow to North American EV customers.
Timeline
October 22, 2026: Lopal Tech announced the planned stake sale.
The Home Front
Automakers are increasingly restructuring global supply chains to comply with evolving international trade and tax regulations. These corporate shifts are critical for ensuring that electric vehicles remain eligible for local consumer incentives.
While this change happens at the corporate level, it is part of a broader effort to stabilize the cost and availability of batteries for your next vehicle. Monitor future manufacturer announcements regarding vehicle battery origins to see how these supply chain shifts impact consumer-facing eligibility.
The takeaway
This divestment represents a calculated shift to maintain critical material supply lines under current trade frameworks. Keep an eye on evolving battery technology labels, as these corporate reconfigurations directly influence the long-term affordability and availability of electric vehicles.
Further reading
Learn more about the latest Electric Vehicles industry shifts.
Source note: This article includes information reported by Metal.
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