South Korea’s LG Energy Solution exits from $8.4bn Indonesia project

South Korea’s LG Vitality Answer mentioned Tuesday it had withdrawn from a multibillion-dollar undertaking to construct electrical batteries in Indonesia, citing a variety of points together with the “investment environment.”

The corporate signed a 142 trillion rupiah ($8.4 billion) deal in 2020 on the so-called Grand Bundle undertaking, which aimed to determine an area electrical car battery worth chain within the nation.

“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 advised AFP in an announcement.

“However, we will continue to explore various avenues of collaboration with the Indonesian government, centering on the Indonesia battery joint ventureHLI Green Power.”

HLI Inexperienced Energy, a three way partnership between LG Vitality Answer and Hyundai Motor Group, operates Indonesia’s first electrical car battery plant, which was launched in 2024 with a production capacity of as much as 10 Gigawatt hours (GWh) of cells yearly.

Indonesia has been searching for to place itself as a key participant within the international EV provide chain by leveraging its huge nickel reserve to draw investment.

Tri Winarno, director basic of coal and mineral of the power and mineral sources ministry, didn’t instantly reply to AFP’s request for remark.

However native media quoted him as saying on Monday that the withdrawal wouldn’t influence the nation’s nickel downstreaming agenda, whereas expressing optimism the federal government would discover different companions to additional its electrical car ambitions.

© 2025 AFP