23-04-2025
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.
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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.
