South Korea's LG Energy Solution exits from US$8.4bn Indonesia project
JAKARTA: South Korea's LG Energy Solution said on Tuesday it had withdrawn from a multibillion-dollar project to build electric batteries in Indonesia, citing a range of issues including the "investment environment".
The company signed a 142 trillion rupiah (US$8.4 billion) deal in 2020 on the so-called Grand Package project, which aimed to establish a local electric vehicle battery value chain in the country.
"Taking into account various factors, including market conditions and investment environment, we have agreed to formally withdraw from the Indonesia GP (Grand Package) project," it told AFP in a statement.
"However, we will continue to explore various avenues of collaboration with the Indonesian government, centring on the Indonesia battery joint venture, HLI Green Power."
HLI Green Power, a joint venture between LG Energy Solution and Hyundai Motor Group, operates Indonesia's first electric vehicle battery plant, which was launched in 2024 with a production capacity of up to 10.00 Gigawatt hours (GWh) of cells annually.
Indonesia has been seeking to position itself as a key player in the global EV supply chain by leveraging its vast nickel reserve to attract investment.
Tri Winarno, director-general of coal and mineral of the energy and mineral resources ministry, did not immediately reply to AFP's request for comment.
But local media quoted him as saying on Monday that the withdrawal would not impact the country's nickel downstreaming agenda, while expressing optimism the government would find other partners to further its electric vehicle ambitions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Borneo Post
23 minutes ago
- Borneo Post
DPM Fadillah: Petronas job cuts unrelated to Petros appointment as sole gas aggregator
Fadillah (second right) interacting with guests while presenting a gift of 'daging korban' (sacrificial meat) during the Majlis Ibadah Korban at Masjid Darul Husni Warrahmah in Kuching. – Photo by Chimon Upon KUCHING (June 7): Petroliam Nasional Berhad's (Petronas) decision to cut over 5,000 jobs, along with a freeze on all promotions and recruitment until December 2026, is unrelated to the recent recognition of Petroleum Sarawak Berhad (Petros) as Sarawak's sole gas aggregator. Deputy Prime Minister Datuk Seri Fadillah Yusof clarified this when met by reporters at the Majlis Ibadah Korban held at Masjid Darul Husni Warrahmah here today. 'No, it has nothing to do with that. It is actually due to the global situation, particularly the decline and fluctuation in oil prices,' he said. Petronas had earlier stated that its internal budgeting was based on Brent crude prices averaging between US$75 and US$80 per barrel. However, the global benchmark has since fallen and is currently hovering around US$65 per barrel. 'Even for Petronas to remain sustainable, oil prices must be above US$60 per barrel. That is why they have to re-evaluate their position,' Fadillah added. MORE TO COME fadillah yusof gas aggregator job cuts Petronas Petros
New Straits Times
3 hours ago
- New Straits Times
US-China renewed dialogue seen lifting Malaysia's trade outlook
KUALA LUMPUR: Renewed trade talks between the United States and China are expected to boost investor confidence and strengthen Malaysia's trade momentum, an economist said. Putra Business School economist Professor Dr Ahmed Razman Abdul Latiff said any move to reduce tariffs between the two economic giants could steady the sails for Malaysia by boosting confidence and trade visibility. "If the US and China agree to resume talks and reach a deal to reduce tariffs on each other, Malaysia's trade environment and investor sentiment will become less volatile and uncertain," he told Business Times. "This would boost investor confidence and encourage continued investment in Malaysia," Razman added, noting that while tensions persist, Malaysia is taking steps to shield its economy. Razman also expects Malaysia's export markets and supply chains to remain competitive, although growth may moderate slightly. This, he said, is supported by ongoing efforts to diversify export destinations, grow the country's trading partnerships and enhance intra-Asean trade. Should US-China negotiations break down again, he said the impact on Malaysia would likely remain limited. "There will be some negative impact but it will be minimum as majority of Malaysia's products such as semiconductor will not be subjected to higher tariffs by the US," he said. Trump and Xi held a 90-minute phone conversation on Thursday, marking their first direct dialogue since Trump resumed office. The call, widely viewed as a positive step towards easing the prolonged trade tensions between the world's two largest economies, laid the groundwork for renewed bilateral cooperation and the resumption of high-level trade negotiations. Both leaders agreed to restart trade talks, with senior US officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, expected to meet their Chinese counterparts. The timing and venue for these negotiations have yet to be finalised but are anticipated to be announced in the coming weeks. Although the call sparked market optimism, US stocks closed lower as a sharp decline in Tesla shares outweighed the positive momentum from progress in US-China tariff negotiations. Tesla shares plunged over 14 per cent in heavy trading as the escalating public feud between Trump and businessman Elon Musk rattled investors, wiping out about US$150 billion in market value. Razman downplayed concerns over the spat saying, "The impact on Malaysia will be minimal, as the fallout primarily affects the SpaceX program and Tesla production."
The Sun
4 hours ago
- The Sun
Billion-dollar battery plant pauses construction in US amid electric vehicle, tariff uncertainty
NEW YORK: A Japanese company has halted construction on a US$1.6 billion factory in South Carolina to help make batteries for electric BMWs, citing 'policy and market uncertainty,' reported Xinhua quoting the Associated Press. 'While Automotive Energy Supply Corp. (AESC) didn't specify what those problems are, South Carolina's Republican governor said the company is dealing with the potential loss of federal tax breaks for electric vehicle buyers and incentives for EV businesses as well as tariff uncertainties from President Donald Trump's administration,' noted the report. 'What we're doing is urging caution -- let things play out because all of these changes are taking place,' Governor Henry McMaster said. AESC announced the suspension in construction of its plant in Florence on Thursday. 'Due to policy and market uncertainty, we are pausing construction at our South Carolina facility at this time,' the company's statement said. AESC promised to restart construction, although it didn't say when, and vowed to meet its commitment to hire 1,600 workers and invest US$1.6 billion. The company said it has already invested US$1 billion in the Florence plant. The battery maker based in Japan also has facilities in China, the United Kingdom, France, Spain and Germany. In the United States, AESC has a plant in Tennessee and is building one in Kentucky. The statement didn't mention any changes with other plants.
