Latest news with #GrandPackage
South China Morning Post
25-04-2025
- Automotive
- South China Morning Post
Indonesia to keep EV battery goal after LG-led JV's ‘very significant' exit
China is strengthening its hold on Indonesia 's electric vehicle battery sector after a South Korean consortium led by LG announced its exit from a US$7.7 billion project to build a full EV battery supply chain in the Southeast Asian country. Advertisement LG's move – seen by analysts as a blow to Indonesia's aspirations to become a regional batteries hub – has prompted Beijing-backed Zhejiang Huayou Cobalt to step in as the project's new leader. South Korea's LG Energy Solution confirmed on Monday that its consortium, which included LG Chem and LX International, had pulled out of the so-called Grand Package project, citing 'market conditions and investment environment' as key factors. The consortium signed a memorandum of understanding with Jakarta in December 2020 to develop an ecosystem spanning operations from raw materials mining and processing to battery production. On Wednesday, Indonesia's Minister of Energy and Mineral Resources Bahlil Lahadalia announced that Huayou Cobalt would replace LG Energy Solution in the project, also known as Project Titan. Despite the swap, Bahlil insisted Indonesia would stick to the project's road map. 'Conceptually, the development of the Grand Package has not changed. The infrastructure and production plan remain in accordance with the initial road map. LG is no longer involved and has been replaced by Huayou,' Bahlil said in a statement. Advertisement Changes in investors in grand-scale projects are 'normal', according to Bahlil. 'Nothing has changed from the initial goal, which is to make Indonesia the world's hub for the electric vehicle industry,' he added.
The Star
24-04-2025
- Automotive
- The Star
President Prabowo shrugs off LG pulling out from battery investment
JAKARTA: President Prabowo Subianto (pic) said on Tuesday (April 22) that there was no reason to be concerned about LG Energy Solution's (LGES) decision to withdraw from a Rp 142 trillion (US$8.45 billion) project to develop electric vehicle battery making in Indonesia. Prabowo told reporters that Indonesia is a big country with a bright future and there would be new investment to take the place of the South Korean company in the EV battery ecosystem. "Of course [there will be new investment]. Indonesia is a big country. Indonesia's [future] is bright," President said with a chuckle. READ ALSO: Indonesia says China's Huayou to replace LGES in EV battery project LGES and the 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 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. Indonesia will continue to seek foreign investors to partner with local companies to develop the battery industry, leveraging the country's rich nickel reserves, an official at the Energy and Mineral Resources Ministry has said. "Even though LG has exited, Indonesia remains convinced our nickel is more competitive than other countries," the director general for mineral and coal development told reporters. Indonesian state-owned miner Aneka Tambang, which had planned to form a JV with LGES to mine nickel, said it remained committed to working with other companies to supply nickel for battery production. - The Jakarta Post/ANN
New Straits Times
22-04-2025
- Business
- New Straits Times
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.
Straits Times
22-04-2025
- Automotive
- Straits Times
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 Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
21-04-2025
- Business
- Business Times
South Korea's LG Energy Solution pulls out of Indonesia EV battery investment
[JAKARTA] South Korea's LG Energy Solution has formally withdrawn from a 142 trillion rupiah (S$11 billion) project to develop electric vehicle battery making in Indonesia, the company said on Monday (Apr 21). 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
