The electric vehicle battery downstream project previously managed by\nthe LG consortium has now been transferred to Chinese company Huayou.\nThis was announced by Minister of Energy and Mineral Resources (ESDM)\nBahlil Lahadalia following a limited cabinet meeting chaired by\nPresident Prabowo at the Presidential Palace in Jakarta on Thursday, 22\nMay 2025.<\/p>\n
Bahlil stated that the project is now ready for groundbreaking. \u201cIt\nhas been decided and approved by the President. On the President\u2019s\ndirection, the project is now being carried out by the Huayou\nconsortium. There are no further issues,\u201d said Bahlil.<\/p>\n
He emphasised that reports suggesting LG voluntarily withdrew from\nthe project were incorrect. According to him, the decision to replace LG\nwith Huayou was taken due to delays in LG\u2019s delivery. \u201cAs the then head\nof the task force, I decided to cancel the cooperation with LG because\nit was taking too long. Together with Pak Rosan and Pak Erick, we agreed\nto bring in Huayou as a replacement. This information needs to be set\nstraight,\u201d Bahlil stressed.<\/p>\n
The project\u2019s ownership structure continues to place Indonesian\nstate-owned enterprises as majority shareholders in the upstream sector.\nThe government considers this step essential to maintaining national\ncontrol over strategic resources.<\/p>\n
During the same meeting, progress on other cooperative projects with\nChinese battery giant CATL was also discussed. Minister of Investment\nand Downstreaming, who also serves as head of BKPM and BPI Danantara,\nRosan Roeslani, emphasised the importance of Danantara\u2019s role in\nsupporting project financing. \u201cPreviously there may have been funding\nconstraints. But since Danantara was established, we have been able to\nassist because this project is very promising \u2014 both in terms of\nreturns, job creation, and economic impact,\u201d said Rosan.<\/p>\n
Rosan further stated that collaboration with Huayou and CATL would\ncreate an integrated ecosystem from mining through to battery production\nunder a single green package concept. \u201cWith the involvement of these two\nmajor consortiums, a complete ecosystem from mining to batteries will be\nrealised \u2014 both through the Huayou and CATL partnerships,\u201d he added.<\/p>\n
The limited cabinet meeting held at the Merdeka Palace in Jakarta was\nchaired directly by President Prabowo Subianto. The meeting addressed\nthe continuation of the electric vehicle battery downstream project,\nspecifically regarding the investment transition from the LG consortium\nto Huayou and developments in similar projects with CATL.<\/p>\n
The meeting was attended by several senior officials, including\nCoordinating Minister for Economic Affairs Airlangga Hartarto, State\nSecretary Prasetyo Hadi, Minister of State-Owned Enterprises Erick\nThohir, Cabinet Secretary Teddy Indra Wijaya, Deputy Minister of\nIndustry Faisol Riza, and Danantara COO Dony Oskaria.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/prabowo-approves-transfer-of-ev-battery-project-from-lg-to-chinas-huayou-1771243459", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }