Indonesia says Huayou van China to replace LGEs in the EV battery project
The Chinese Zhejiang Huayou Cobalt replaces the LG energy solution of South Korea as a strategic investor in a project of millions of dollars to build a joint venture for electric vehicles in Indonesia, officials said on Wednesday.
The South Korean company, which was part of a consortium that signed a 142 trillion Rupiah ($ 8.4 billion) “Grand Project” in 2020, announced the withdrawal of the project this week, stating factors, including market conditions and the investment environment.
Energy and Mineral Resources Bahlil Lahadalia said that the decision of LG Energy Solution would not have a significant influence on the project, which aims to set up a local battery of value chain for electric vehicles in Indonesia.
“Changes only occur at the level of investors, where LG no longer continues its involvement … and has been replaced by a strategic partner from China, namely Huayou,” Bahlil said in a statement.
“Nothing has changed compared to the original goal, namely Indonesia as the center of the world industry in the world.”
Indonesia, the home of the world’s largest nickel reserve, has wanted to position itself as an important player in the global supply chain for electric vehicles by using his enormous reserve of the critical mineral to attract investments.
The government decided not to go further with the South Korean company in the project because of the long negotiation process with the company to realize its investment, said Minister of Investments Rosan Roeslani.
Rosan called Huayou’s fame with Indonesia as one of the reasons why the government chose the company to follow the LG energy solution.
“Huayou had invested in Indonesia,” said Rosan.
“They have sources to develop the industry in the future.”
LG Energy Solution said in a statement on Tuesday that the “different ways of cooperation” will continue to investigate with the Indonesian government, including in its joint venture of the battery.
HLI Green Power, a joint venture between LG Energy Solution and Hyundai Motor Group, operates the first battery plant in Indonesia, which was launched in 2024 with a production capacity of up to 10 gigawatt hours (GWH) of cells per year.
