Indonesia says US$9.8 billion EV battery project to continue with China's Huayou after LG's exit
[JAKARTA] Indonesia has confirmed that a US$9.8 billion electric vehicle (EV) battery investment project will move forward, but with China's Zhejiang Huayou Cobalt stepping in as strategic investor following the pullout by South Korea's LG Energy Solution (LGES).
Bahlil Lahadalia, Indonesia's Minister of Energy and Mineral Resources, said in a statement on Wednesday (Apr 23) that the Titan Project is still on track, despite global geopolitical tensions and economic uncertainties.
He emphasised that the core plan and production timeline will proceed as originally scheduled, with groundbreaking set to take place later this year.
'We want to make it clear that this project is not impacted by global dynamics such as wars or economic uncertainty. Changes in investors are a normal part of large-scale projects, and our ultimate goal remains unchanged: to position Indonesia as a global hub for the electric-vehicle industry.'
China's Huayou will team up with Indonesia's state-owned mining companies, including Indonesia Battery Corporation, through a joint-venture arrangement to produce EV batteries.
In a statement last week, LGES, with LG Chem, LX International Corp and other consortium partners, announced their decision to withdraw from their planned investment in the project, which is one of the country's five major EV battery mega projects.
A NEWSLETTER FOR YOU
Friday, 8.30 am Asean Business
Business insights centering on South-east Asia's fast-growing economies.
Sign Up
Sign Up
The firm cited shifting market dynamics and a changing investment landscape as key reasons for its withdrawal.
The pullout comes barely a year after Jakarta celebrated a key milestone in its push to produce EV batteries – the inauguration of the project's plant, also South-east Asia's first EV battery cell plant, in Karawang, West Java. The guest of honour at the event was then-President Joko Widodo.
Development of the facility was begun by HLI Green Power, a joint venture between Hyundai, LGES and Indonesia Battery Corporation.
In its first phase, US$1.1 billion was invested in the facility that would generate 10 gigawatt-hours (GWh) of battery cells annually. That output is enough to power around 150,000 electric cars, said the company in a statement last year.
A second phase, estimated at US$2 billion, was set to double the plant's output to 20 GWh, underscoring Indonesia's bold vision to become a major player in the global EV supply chain.
State-Owned Enterprises Minister Erick Thohir gave the assurance that the departure of the LG-led consortium would not derail Indonesia's ambitions to become a key player in the EV industry by leveraging the country's abundant nickel reserves, a critical component in battery production.
The minister was reported by Antara news agency as having said: 'LG's decision doesn't slow our momentum. We are still moving forward aggressively to develop an EV supply chain that supports Indonesia's long-term vision.'
Indonesian state-owned miner Aneka Tambang, which had initially planned to form a joint venture with LGES for nickel mining, reaffirmed its commitment to collaborating with other companies to ensure a steady supply of nickel for the production of batteries.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AsiaOne
14 hours ago
- AsiaOne
Kia Carnival Hybrid review: Hybrid power and modern updates for a spacious family MPV, Lifestyle News
We've seen all manner of large MPVs go on sale in Singapore recently. Many of these are Chinese in origin, come filled with lots of fancy tech and luxury features, and feature some form of electrification, being either full electric vehicles (EVs), or plug-in hybrids. But what if you wanted something a bit more traditional and old-school? Well, there are a handful of MPVs that stick to the classic internal combustion route and one of them is the updated Kia Carnival tested here. What's new in the latest Kia Carnival? The updated Kia Carnival has received a mid-life facelift, and it gets some pretty substantial changes externally, internally and under the hood. On the outside, it gets a larger front grille that's flanked by vertical LED headlights on either side. The overall effect gives the car a more imposing look that gives it lots of presence, especially in the test car's black colour. The rear has also been slightly redesigned, with the taillights now extending downwards at both ends from the horizontal light bar. It's a small but significant change, and gives the Kia Carnival a futuristic look that wouldn't look out of place in a sci-fi movie. The changes to the interior are somewhat more subtle, however. The most visible update is the driver instrument panel, which is now a fully digital item with a 12.3-inch display, instead of the previous analogue gauges. The controls on the dashboard have also been redesigned and refreshed, and features Kia's new switchable LCD display that can toggle between the controls for the air conditioning or media system. The biggest change to the Kia Carnival though, is under the bonnet, with the large MPV now swapping its previous 2.2-litre diesel engine for a 1.6-litre hybrid powerplant. Despite the downsized engine, it actually has more power than before. The new hybrid drivetrain now produces 241hp, an increase of 43hp over the diesel's 198hp. However, torque has been reduced to 366Nm, down from 440Nm previously. The car's gearbox also now has six speeds instead of its previous eight, and Kia says that hybrid drivetrain's power delivery reduces the need for more gears, as compared to the diesel powerplant which required more shifts. So how does the updated Kia Carnival Hybrid drive? The primary reason for the switch to hybrid power from diesel is down to the fact that Singapore has banned the registration of new diesel passenger cars from January 2025. [[nid:694420]] But while diesel enthusiasts may lament the loss of the plentiful torque of the old powerplant, the new hybrid drivetrain does bring about its own characteristics and benefits. For starters, it's no less responsive than the diesel, with the electric motor of the hybrid delivering an instant boost on acceleration with no lag. The transition from electric motor to petrol engine feels seamless as well, and the switch is virtually imperceptible. Smoothness is a pervasive theme with this car, and the Carnival impresses with its well-damped ride quality and excellent refinement. On smooth highways, the Kia Carnival glides along in great comfort and silence, while on rougher roads the suspension works well to ease out the bumps without feeling too ruffled. Of course, given the Carnival's stature as a large family MPV, one should not expect much in terms of nimbleness or agility. The steering is appropriately heavy, and while it's not exactly cumbersome to steer around corners, its size and weight is clearly evident to the driver. In terms of fuel efficiency, the Kia Carnival Hybrid delivers a claimed average fuel consumption figure of 6.5 litres per 100km, which is actually not that far off from the diesel's figure of 6.8 litres per 100km. But of course, the fact that the hybrid allows for the ability to drive on electric power means that, on the whole, it is still considered greener and more efficient than the diesel-powered model. How does the Kia Carnival Hybrid fare as an MPV then? Given its size, it's no surprise that the Kia Carnival Hybrid is extremely spacious inside. After all, this is meant to be a car that can ferry seven people in comfort over long distances. The best seats in the house are arguably in the second row, with its pair of 'VIP lounge seats' (as Kia calls them) that can recline fully, and come with heating and ventilation functions as well. But even if you're confined to the third row, there's still plenty of room to accommodate full-sized adults without needing to contort yourself to get comfortable. As a nice touch, there are also comfort features like cupholders and sunshades, so that those in the back don't feel like second-class citizens. Probably the most impressive bit about the Kia Carnival though is its generous boot space. With all the seats up, there is a massive 627 litres available, which is enough to fit two full-sized luggage bags, and then some. If you fold the third row seats down, there is an absolutely colossal 2,827 litres of space. With that kind of capacity, you could throw in a couple of bicycles and an entire selection of Ikea flat-packed furniture and still have room to spare. Is the Kia Carnival Hybrid a worthy buy then? While the Kia Carnival Hybrid is incredibly spacious and comfortable, even by large MPV standards, it doesn't exactly come cheap. The 7-seater version as tested here retails for $287,999 with COE (as of June 2025). You can save a little bit if you opt for the 8-seater version, which goes for $281,999 with COE, but you lose the ultra-comfortable 'VIP lounge seats' in the second row in favour of a standard three-seater bench. That said, it does have its appeal. The new hybrid powertrain is smooth and efficient, and the updates certainly give the Carnival a renewed sense of modernity. If you're looking for a large family MPV of the old-school, non-electric variety, the Kia Carnival Hybrid is a choice that's hard to ignore. [[nid:714096]] No part of this article can be reproduced without permission from AsiaOne.
Business Times
17 hours ago
- Business Times
Indonesia expects to conclude free trade talks with EU by end of June
[JAKARTA] Indonesia said on Saturday that free trade negotiations with the European Union, which have been going on for nine years, are expected to finish by the end of June. Airlangga Hartarto, the chief economic minister for South-east Asia's biggest economy, met with EU Commissioner for Trade Maros Sefcovic in Brussels on Friday. 'Indonesia and the European Union have agreed to conclude outstanding issues and we are ready to announce a conclusion of substantial negotiations by the end of June 2025,' Airlangga Hartarto said in a statement. He did not disclose details about what agreements may have been reached. Representatives for the EU in Jakarta did not respond to a request for comment. The EU is Indonesia's fifth biggest trade partner, with total trade between the two reaching US$30.1 billion last year. Indonesia had a US$4.5 billion trade surplus, Airlangga said. Indonesia and the EU have previously disagreed on the EU's trade rules for products with potential links to deforestation which could affect Indonesian palm oil, as well as Jakarta's ban on exports of raw minerals. Indonesian officials have been motivated to accelerate talks on free trade agreements, keen to diversify the country's export destinations as they deal with US tariff challenges. Seeking to end US trade deficits worldwide, US President Donald Trump announced sweeping 'reciprocal' tariffs that have since been paused until July. Indonesia is facing a 32 per cent tariff rate. REUTERS
Straits Times
19 hours ago
- Straits Times
US judge approves settlement allowing NCAA schools to pay athletes
The approval resolves long-running litigation between the NCAA and student athletes. PHOTO: REUTERS NEW YORK – A United States judge on June 6 granted final approval to a US$2.8 billion (S$3.6 billion) settlement with the National Collegiate Athletic Association (NCAA) that will allow schools for the first time to compensate student athletes for past and future commercial use of their names, images and likenesses. The settlement, approved in a ruling by US District Judge Claudia Wilken in the Oakland, California, federal court, resolves long-running litigation between the NCAA and student athletes. 'Despite some compromises, the settlement agreement nevertheless will result in extraordinary relief for members of the settlement classes,' Wilken wrote. She also said that the deal will 'permit levels and types of student-athlete compensation that have never been permitted in the history of college sports'. The ruling marked a 'historic day for college sports and the rights of athletes', the lead attorneys for the plaintiffs, Steve Berman and Jeffrey Kessler, said in a statement. In a statement, NCAA president Charlie Baker welcomed the judge's ruling. 'Student-athletes will benefit from the rich opportunities they enjoy now, plus far more scholarship opportunities, landmark financial benefits and a streamlined NCAA to support them,' he said. The NCAA denied any wrongdoing in agreeing to settle. The deal faced dozens of objections that it did not adequately compensate athletes or was unfair in other ways. Objectors to the deal now can appeal to the San Francisco-based 9th US Circuit Court of Appeals. The settlement, covering hundreds of thousands of current and former students since 2016, resolved three lawsuits that claimed NCAA rules barring payments to athletes violated US antitrust law. The US$2.8 billion will cover past damages. The plaintiffs' lawyers previously estimated the deal would provide tens of billions of dollars to class members over the next 10 years. Schools will be allowed to pay athletes from funds that universities receive from broadcasts and other commercial sources. The NCAA in April convinced a federal judge in Manhattan to dismiss a lawsuit seeking compensation for thousands of former student athletes who played team sports in college prior to 2016. Those students have filed an appeal. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
