China's Huayou Cobalt Plans US$20 Billion Additional Investment in Indonesia, Surpassing LG
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has revealed that Zhejiang Huayou Cobalt Co plans an additional US$20 billion (equivalent to Rp335 trillion) in investment in Indonesia, exceeding that of LG.
Investment Minister and BKPM Head Rosan Roeslani said the Chinese smelting giant has already invested extensively in various countries, including Indonesia. To date, Huayou has invested US$8.8 billion (Rp147 trillion) in the country.
"Huayou's investment in Indonesia as of today has already reached US$8.8 billion — that's already been invested and completed. They have indicated that the potential for future investment from the Huayou Group could reach an additional US$20 billion according to their calculations," Rosan told reporters on Tuesday (29/4/2025).
Rosan said Huayou has requested time to finalise its new project plans. The investment details are scheduled to be disclosed in the third week of May 2025.
Beyond replacing LG Energy Solution in Indonesia's battery supply chain project, Huayou also plans to develop an industrial estate in Pomala, Southeast Sulawesi.
"They have studied this and want to invest in Indonesia, including developing an industrial park cluster similar to those in Morowali and Weda Bay. At Weda Bay they are a minority shareholder, and now they want to develop their own," he explained.
According to Rosan, building an industrial park on the scale of Morowali or Weda Bay requires substantial capital.
"It's not just Huayou — I have also met with other companies that want to build similar facilities, and later they will be able to attract investment from other countries as well," he added.
Huayou was recently reported to be filling most of the positions vacated by LG's departure from the integrated nickel-based battery project in Indonesia. To replace LG, Huayou will prepare US$8.6 billion (Rp145 trillion).
The government sees strong interest and proven capability from Huayou, given its longstanding investment in Indonesia in the same sector.
"Huayou has previously invested in a very similar field, so they understand the sector," Rosan said in a press statement on Wednesday (24/4/2025).
LG Energy Solution had originally joined a consortium with state-owned Indonesia Battery Corporation (IBC) in a battery project known as Project Titan, with a total investment of US$9.8 billion (Rp142 trillion). That investment commitment comprised US$850 million for upstream mining, US$4 billion for an HPAL smelter, US$1.8 billion for a precursor/cathode plant, and US$3.2 billion for a battery cell factory.
With LG's exit from the consortium, Rosan said Huayou would take over LG's share. Huayou is also said to have expressed investment interest owing to its possession of similar technology for battery cell development.
Investment Minister and BKPM Head Rosan Roeslani said the Chinese smelting giant has already invested extensively in various countries, including Indonesia. To date, Huayou has invested US$8.8 billion (Rp147 trillion) in the country.
"Huayou's investment in Indonesia as of today has already reached US$8.8 billion — that's already been invested and completed. They have indicated that the potential for future investment from the Huayou Group could reach an additional US$20 billion according to their calculations," Rosan told reporters on Tuesday (29/4/2025).
Rosan said Huayou has requested time to finalise its new project plans. The investment details are scheduled to be disclosed in the third week of May 2025.
Beyond replacing LG Energy Solution in Indonesia's battery supply chain project, Huayou also plans to develop an industrial estate in Pomala, Southeast Sulawesi.
"They have studied this and want to invest in Indonesia, including developing an industrial park cluster similar to those in Morowali and Weda Bay. At Weda Bay they are a minority shareholder, and now they want to develop their own," he explained.
According to Rosan, building an industrial park on the scale of Morowali or Weda Bay requires substantial capital.
"It's not just Huayou — I have also met with other companies that want to build similar facilities, and later they will be able to attract investment from other countries as well," he added.
Huayou was recently reported to be filling most of the positions vacated by LG's departure from the integrated nickel-based battery project in Indonesia. To replace LG, Huayou will prepare US$8.6 billion (Rp145 trillion).
The government sees strong interest and proven capability from Huayou, given its longstanding investment in Indonesia in the same sector.
"Huayou has previously invested in a very similar field, so they understand the sector," Rosan said in a press statement on Wednesday (24/4/2025).
LG Energy Solution had originally joined a consortium with state-owned Indonesia Battery Corporation (IBC) in a battery project known as Project Titan, with a total investment of US$9.8 billion (Rp142 trillion). That investment commitment comprised US$850 million for upstream mining, US$4 billion for an HPAL smelter, US$1.8 billion for a precursor/cathode plant, and US$3.2 billion for a battery cell factory.
With LG's exit from the consortium, Rosan said Huayou would take over LG's share. Huayou is also said to have expressed investment interest owing to its possession of similar technology for battery cell development.