Indonesia Cancels LG Deal in EV Battery Project, Brings in China's Huayou

Jakarta, VIVA – Indonesian Minister of Energy and Mineral Resources, Bahlil Lahadalia, clarified that the LG consortium has not pulled out of the country’s electric vehicle (EV) battery ecosystem project.

Instead, the government decided to cancel the agreement with LG due to delays.

The minister made this statement after attending a closed meeting with President Prabowo Subianto at the Merdeka Palace on Thursday (May 22).

“The reports suggesting LG has withdrawn are not true. What actually happened is that I, as the former head of the task force, decided to cancel the cooperation with LG because it took too long,” minister Lahadalia said.

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• Electrek

Following the cancellation, the minister held a meeting with State-Owned Enterprises Minister Erick Thohir and Investment Minister/Head of BKPM Rosan Roeslani.

During the meeting, the government decided to find a replacement consortium, which turned out to be China’s Huayou.

“Together with Mr. Roeslani and Mr. Thohir, we decided to bring in Huayou as LG's replacement. Even in today's challenging global economy, the investment outlook for downstream industries, especially in critical minerals, is still very relevant globally,” minister Lahadalia remarked.

During the same event, he confirmed that President Prabowo Subianto had approved the continuation of the US$9.8 billion EV battery ecosystem project with the new partner, Huayou.

“Thankfully, the President has approved it. As directed by him, the Huayou consortium is now officially in charge. Everything is ready for the groundbreaking,” he concluded.

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“Together with Mr. Roeslani and Mr. Thohir, we decided to bring in Huayou as LG's replacement. Even in today's challenging global economy, the investment outlook for downstream industries, especially in critical minerals, is still very relevant globally,” minister Lahadalia remarked.