LG Energy pulls out of $11 billion Indonesia EV battery project
LG Energy's withdrawal is a blow to the country's ambitions to become a major hub for the technology. PHOTO: REUTERS
London – LG Energy Solution withdrew from an 142 trillion rupiah (S$11 billion) partnership with Indonesia to build a full electric vehicle battery supply chain, a blow to the country's ambitions to become a major hub for the technology.
The South Korean firm pulled out due to various factors including 'market conditions and investment environment,' it said in a statement on April 21. The memorandum of understanding for the so-called Grand Package project was signed in 2020, and envisaged a suite of investments in cooperation with Indonesian state-owned enterprises.
LG's withdrawal is a setback for Indonesia, which has tried to leverage its large reserves of battery metal nickel to draw investment from foreign firms. The South-east Asian nation is already dealing with the fallout of the new US tariffs, as well as broader investor anxiety about policies under President Prabowo Subianto.
LG Energy Solution said it would continue to explore areas of collaboration with the Indonesian government. In 2024, the firm opened the country's first battery cell plant with Hyundai Motor Group. BLOOMBERG
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