Latest news with #ZhejiangHuayouCobalt
South China Morning Post
09-05-2025
- Business
- South China Morning Post
Huayou may step in as South Korea's LG abandons US$8.45 bn Indonesia EV battery investment
LG Energy Solution (LGES) of South Korea has exited its US$8.45 billion (HK$65.7 billion) electric vehicle (EV) battery project in Indonesia, prompting the Indonesian government to court China's Zhejiang Huayou Cobalt as a potential replacement investor. Advertisement Initially launched as a joint venture between LGES and the Indonesia Battery Corporation (IBC), the project was abandoned after LGES cited shifting market dynamics and a less favourable investment climate. Indonesia's state-owned Antara news agency reported that the Energy, Mineral and Coal Suppliers Association (Aspebindo) warned LGES's exit could derail the country's EV industry road map, hinder technology transfer, and heighten the nation's dependence on imports. Aspebindo also underscored the need for Indonesia to bolster its policy framework to stay competitive amid global industrial realignments. Singapore's Nanyang Sin-Chew Lianhe Zaobao reported that Huayou is positioned to assume control of the project. Indonesia's Ministry of Energy and Mineral Resources dismissed concerns over the shift, noting that investor reshuffles are routine in major projects and reaffirming the nation's goal to become a regional EV manufacturing hub. Advertisement Huayou, however, has taken a cautious stance on the potential takeover.
The Star
30-04-2025
- Business
- The Star
Foreign investment rises 12% in first quarter
Still growing: A major construction project in Jakarta's business district. Singapore was the source of the highest amount of FDI in Indonesia in the first quarter. — AFP JAKARTA: Indonesia has seen respectable growth in foreign direct investment (FDI) in the first quarter of this year as realised funding reached a quarter of the government's full-year target, while domestic investment grew even faster. Investment and Downstream Minister Rosan Roeslani revealed in a press briefing on Tuesday that the first-quarter FDI amounted to 230.4 trillion rupiah or about US$13.7bil, which marks a 12% year-on-year (y-o-y) increase. 'This was one of the very, very good indicators, very, very positive amid – what we all could see – the increasing geopolitical and geo-economic tensions. But, we see that the appetite of investors, be they foreign or domestic, to invest in Indonesia keeps increasing,' said Rosan. He pointed out that the composition between domestic and foreign investment in the first quarter was unusual in that the domestic investment of 234.8 trillion rupiah outstripped FDI. Rosan argued that this was not because FDI had slowed down, as in fact it had risen, but because the growth of domestic investment at 19.1% y-o-y outpaced the growth of FDI thanks to Indonesians pouring lots of funds into infrastructure projects and real estate. Total investment logged in the first quarter was 465 trillion rupiah, which marks a 15.9% increase from the first quarter of last year. That figure amounts to 24.4% of this year's investment target of 1.9 quadrillion rupiah, which Rosan said last week was on track with the target laid down by the National Development Planning Agency. The largest chunk of the investment went to the metals sector, followed by transportation, mining, other services and housing, in that order. With US$4.6bil coming in from Singapore in the first quarter, the city state was once again the main source of FDI, which Rosan attributed to its status as a financial hub, meaning the funds could have originated from any country but was routed through Singapore. China followed with US$4bil, then Malaysia with US$1bil and Japan with roughly the same amount. Malaysia has only recently become a top-ranking investor to Indonesia. This was owed largely to the establishment of joint ventures, Rosan explained, without elaborating. The minister also addressed South Korean LG Energy Solution's recent announcement on withdrawing from a major battery project in Indonesia but noted that the company remained invested in the archipelago through other projects. He explained that the company had backed down from three investment commitments but had realised a US$1.1bil investment plan in another battery-industry project and was looking to expand that business by pouring in an extra US$1.7bil. China's Zhejiang Huayou Cobalt is slated to replace LG Energy Solution as the lead investor in Project Titan, a proposed end-to-end production chain from nickel processing to battery-cell manufacturing meant to become the backbone of the country's battery ecosystem. Rosan said he had met and talked with Huayou and would hold follow-up meetings in May. The minister expressed confidence that Huayou's investment plan would be realised 'very swiftly', before explaining that the original goal remained the same but that the Chinese company might bring in more advanced technology. He also revealed that Apple had started land clearing to begin its investment in Batam, Riau Islands, and said the US-tech company might bring more foreign capital to Indonesian soil than planned. Rosan said he had talked with three Apple vendors, one of whom happened to be Huayou. — The Jakarta Post/ANN
Business Times
23-04-2025
- Automotive
- Business Times
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.
Time of India
23-04-2025
- Business
- Time of India
China's Huayou to replace LGES in Indonesian EV battery project, minister says
China's Zhejiang Huayou Cobalt is replacing South Korea's LG Energy Solution as a strategic investor in one of Indonesia's major EV battery projects, the country's Energy and Mineral Resources Minister Bahlil Lahadalia said on Wednesday. LGES on Monday announced its withdrawal from the 142 trillion rupiah ($8.42 billion) project. Indonesia is keen to develop domestic processing industries to produce batteries and EVs to take advantage of its rich mineral resources. "Change of investors is a common dynamic in large-scale projects," Bahlil said in a statement, adding that there will be no change to the underlying plans for the project. Huayou would be collaborating with Indonesian state-controlled companies on the project. Bahlil said Indonesia remains committed to using its mineral resources domestically, and the government will ensure a smooth transition for the project. A ground breaking ceremony for a part of the project is planned for later this year, he added, without sharing more details. Huayou's Indonesian unit did not immediately respond to a Reuters request for comment.
Yahoo
23-04-2025
- Business
- Yahoo
China's Huayou to replace LGES in Indonesian EV battery project, minister says
JAKARTA (Reuters) - China's Zhejiang Huayou Cobalt is replacing South Korea's LG Energy Solution as a strategic investor in one of Indonesia's major EV battery projects, the country's Energy and Mineral Resources Minister Bahlil Lahadalia said on Wednesday. LGES on Monday announced its withdrawal from the 142 trillion rupiah ($8.42 billion) project. Indonesia is keen to develop domestic processing industries to produce batteries and EVs to take advantage of its rich mineral resources. "Change of investors is a common dynamic in large-scale projects," Bahlil said in a statement, adding that there will be no change to the underlying plans for the project. Huayou would be collaborating with Indonesian state-controlled companies on the project. Bahlil said Indonesia remains committed to using its mineral resources domestically, and the government will ensure a smooth transition for the project. A ground breaking ceremony for a part of the project is planned for later this year, he added, without sharing more details. Huayou's Indonesian unit did not immediately respond to a Reuters request for comment. ($1 = 16,870.0000 rupiah)
