South Korea's LG Energy Solution pulls out of Indonesia EV battery investment
LGES and the Indonesian government signed a deal on the so-called Indonesia Grand Package project in late 2020, which includes investments across the EV battery supply chain in the South-east Asian 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,' LGES said in a statement.
'However, we will continue to explore various avenues of collaboration with the Indonesian government, centreing on the Indonesia battery joint venture, HLI Green Power,' it added.
HLI Green Power, a joint venture led by LGES and Hyundai Motor Group, last year inaugurated Indonesia's first battery cell production plant with an annual capacity of 10 gigawatt hours. It has plans to expand the capacity in the second phase of investment.
Indonesia will continue to seek foreign investors to partner with local companies to develop the battery industry, leveraging the country's rich nickel reserves, said energy ministry official Tri Winarno.
'Even though LG has exited, Indonesia remains convinced our nickel is more competitive than other countries,' he told reporters.
Indonesian state-controlled miner Aneka Tambang, which had planned to form a JV with LGES to mine nickel, said it remained committed to work with other companies to supply nickel for battery production.
State firm Indonesia Battery Corporation, which had also planned to partner with LGES, did not respond to requests for comment. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
3 hours ago
- Straits Times
Thailand turning to Sri Lankan workers to cope with Cambodian exodus
Sign up now: Get ST's newsletters delivered to your inbox About 400,000 Cambodians working in Thailand have left the country during the fighting, according to the Cambodian government. BANGKOK - Thailand's cabinet has approved the hiring of 10,000 Sri Lankan workers as it tries to address a labour shortage caused by Cambodian workers returning home in the wake of a deadly border conflict between the two countries, a Thai senior official said on Aug 19. Thailand's ageing population and shrinking workforce has forced it to rely on at least 3 million registered foreign labourers across the agriculture, construction, and manufacturing sectors, data from the International Labour Organisation showed. More than 30,000 workers from Sri Lanka have already registered and 10,000 will be sent to Thailand in the first stage, Labour Minister Pongkawin Jungrungruangkit told reporters, adding that it would also allow workers from Nepal, Bangladesh, Indonesia, and the Philippines to apply. A long border dispute between Thailand and Cambodia in July boiled over into the worst fighting in decades , with at least 43 people killed and over 300,000 displaced on both sides of the border. The two South-east Asian nations have now agreed a fragile ceasefire agreement. Before the conflict began, over 520,000 Cambodians worked in Thailand, accounting for 12 per cent of the country's foreign workforce, according to official data. About 400,000 Cambodians working in Thailand have left the country during the fighting, according to the Cambodian government. Sri Lanka, which has emerged as a key source of replacement labour, saw a record 314,786 citizens leave for overseas employment in 2024, official data showed, with economic hardship pushing many to look for work overseas. Top stories Swipe. Select. Stay informed. Singapore NDP 2026 to be held at National Stadium to accommodate more Singaporeans Singapore What led to Changi Airport runway incident involving 2 China Eastern Airlines planes in Aug 2024 Singapore FairPrice apologises after woman finds worm in salmon bought from Bedok North outlet Singapore Girl, 14, among 3 injured after minibus falls into Bukit Panjang monsoon drain Singapore CPIB nabs 9 suspects for alleged match-fixing in national basketball league Singapore Live Singapore-raised seafood on sale at 3 Giant supermarkets from Aug 19 Singapore How we can beat the heat in Singapore The Middle East was the primary destination, and many also sought jobs in South Korea and Japan. Sri Lankan migrant workers are the largest source of foreign exchange for the South Asian island nation. REUTERS
Straits Times
4 hours ago
- Straits Times
National Wages Council seeks public views on salary, employment guidelines by Sept 1
Sign up now: Get ST's newsletters delivered to your inbox The council will continue to set out its yearly guidance on progressive wage growth for lower-wage workers. SINGAPORE – The National Wages Council (NWC) is seeking public views to develop its annual guidelines on salaries and employment issues in Singapore. The NWC takes into account Singapore's economic competitiveness, labour market conditions, inflation, productivity growth as well as the global economic outlook in its deliberations. It will also continue to lay out its annual guidance on the range of Progressive Wage growth for lower-wage workers. The Progressive Wage Model is a wage ladder tied to skill and productivity improvements currently in place for lower-wage workers in seven sectors and two occupations – including the cleaning and security sectors – with wage floors at each rung increasing according to a pre-determined schedule. Members of the public who are keen to provide their feedback and suggestions on the upcoming guidelines can do so at by Sept 1. The NWC, which comprises representatives from the Government, employers and employees, will convene on Sept 1. The guidelines are expected for release by November, covering the period from Dec 1, 2025, to Nov 30, 2026. While real wage growth in Singapore picked up in 2024 as inflation eased, the Ministry of Manpower (MOM) said it could slow down in 2025 due to ongoing geopolitical tensions and global trade uncertainties. After accounting for inflation, which eased from 2023, real wages grew by 3.2 per cent in 2024, up from 0.4 per cent in 2023, said MOM in its annual wage practices report released on May 28. Top stories Swipe. Select. Stay informed. Singapore What led to Changi Airport runway incident involving 2 China Eastern Airlines planes in Aug 2024 Singapore Fairprice apologises after woman finds worm in salmon bought from Bedok North outlet Singapore CPIB nabs 9 suspects for alleged match-fixing in national basketball league Singapore Live Singapore-raised seafood on sale at 3 Giant supermarkets from Aug 19 Singapore Singapore seals carbon credit deal with Thailand, its first South-east Asian partner Asia Singaporean man sentenced to 72 years' jail in Malaysia for murdering wife and stepson Singapore Court to assess if teen who advertised vapes for sale on WhatsApp can receive probation Administrative and support services reported the highest wage growth at 8.7 per cent in 2024, largely due to the Progressive Wage Model. This was followed by financial services at 6.7 per cent, and community, social and personal services at 5.7 per cent. But wage growth in the manufacturing and wholesale trade industries was below average, coming in at 5.1 per cent and 4.2 per cent, respectively, due to ongoing geopolitical and trade tensions. These two sectors are expected to further moderate in the coming year. The council has 37 members, led by chairman Peter Seah, who also chairs DBS. There are nine new faces, including Mr Tan Cheng Kwee, the incoming deputy chief executive of the Workforce Singapore; National Trades Union Congress director of migrant workers segment Michael Lim; and Ms Noor Irdawaty Jammarudin, general secretary of the built environment and Urban Trades Employees' Union.
Business Times
5 hours ago
- Business Times
Singapore inks carbon credit transfer agreement with Thailand, first one with a S-E Asian country
[SINGAPORE] The Republic has inked a carbon credit transfer agreement with Thailand, the first with a South-east Asian country. This agreement sets out a framework for the generation and international transfer of carbon credits to Singapore from carbon mitigation projects in Thailand, said the Ministry of Trade and Industry (MTI) in a media statement on Tuesday (Aug 19). The city-state had signed such agreements with seven other countries – Paraguay, Papua New Guinea, Ghana, Bhutan, Peru, Chile and Rwanda. The deal with Thailand comes slightly over a month after a Singapore official said that the city-state is aiming to finalise its first transfer agreement with a South-east Asian (SEA) country by the end of this year. Singapore has already signed memorandums of understanding (MOUs) with five SEA countries – Vietnam, Cambodia, Laos, the Philippines and most recently Malaysia – to collaborate on carbon credits. These MOUs are typically signed first before they progress to an eventual agreement. Such international partnerships are aligned with Article 6 of the Paris Agreement, which governs rules on the bilateral and international transfer of carbon credits. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up Under Article 6, Thailand will have to increase its reported emissions by the amount of carbon credits it has transferred to Singapore, to avoid double counting. One carbon credit represents a reduction, avoidance or removal of one tonne of carbon dioxide equivalent. Project developers can leverage this framework to develop high-quality carbon credit projects that are aligned with the Article 6 rulebook, said MTI. More information on the process for authorisation of these carbon credits projects and eligible carbon crediting methodologies under the agreement will be published in the future. MTI also said that this collaboration between Singapore and Thailand will advance both countries' climate ambitions by directing financing towards unlocking additional mitigation potential in Thailand. The carbon mitigation projects authorised under this agreement will promote sustainable development and deliver tangible benefits to local communities, such as the creation of jobs, improved waste management, enhanced energy efficiency and reduction of environmental pollution. The agreement was signed by Singapore's Minister-in-charge of Energy and Science & Technology Tan See Leng and Thailand's Minister of Natural Resources and Environment Chalermchai Sri-on on the sidelines of the Singapore Regional Business Forum in Bangkok. Dr Tan, who is also manpower minister, said that Singapore and Thailand have a longstanding partnership in trade, investment and sustainable development. 'This year marks the 60th anniversary of our diplomatic relations, and it is especially meaningful that climate action is becoming an increasingly important pillar of our collaboration, reflecting our shared commitment to addressing global challenges,' he added. He also said that he looks forward to this agreement serving as a pathfinder for the region, and demonstrate how South-east Asia can develop and scale high-quality carbon credit projects that will drive meaningful emissions reductions, while unlocking new opportunities in the carbon market for businesses. Chalermchai said that this cooperation is a clear signal that Asean can drive high-quality, internationally aligned greenhouse-gas mitigation. 'We value Singapore's partnership in unlocking climate finance and advancing credible carbon credit projects in Thailand – from forestry and clean energy to zero-emission transport – that deliver environmental, economic and social benefits for our people. Thailand is committed to becoming a hub for such projects and is ready to share our approach as a model for the region,' he said. In his keynote speech during the forum, Dr Tan noted that the Asean region's green economy could unlock annual revenues of up to US$300 billion. This may come from tapping on South-east Asia's rich natural assets to develop carbon markets, modernising domestic and regional electric grids, and accelerating the region's electric vehicle ecosystem. Dr Tan highlighted that Asean would also accelerate discussions on a region-wide power grid in an effort to achieve a more sustainable future for the region. 'This green transition is not only a tangible step towards combatting the effects of climate change, but also in creating new jobs and enhancing our collective regional energy security,' Dr Tan said. 'For us to unlock its full potential, all of us have to work together, both at the bilateral and also at the regional levels,' he added.
