China's Huayou Cobalt to Fill US$8.6 Billion Gap After LG Exit from Indonesia's Integrated Battery Project
JAKARTA — The Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) has stated that Zhejiang Huayou Cobalt Co. will fill the majority of the investment in Indonesia's integrated nickel-based battery project following LG Energy Solution's departure.
Minister of Investment and Downstream Industries/Head of BKPM Rosan P Roeslani said Huayou would invest approximately US$8.6 billion or Rp145.2 trillion. "Huayou's investment is definitely US$8.6 billion," Rosan said after the Indonesia AI Day for Mining Industry 2025 event on Thursday (24/4/2025).
Contacted separately, Deputy for Investment Promotion at the Ministry of Investment and Downstream Industries/BKPM, Nurul Ichwan, said the total US$9.8 billion investment in the battery project is divided across four joint ventures. These joint ventures comprise upstream mining, HPAL smelter, precursor/cathode plant, and battery cell factory investments.
Currently, one of the four joint ventures is already operational — the battery cell project of PT Hyundai LG Indonesia (HLI) with an investment of US$1.1 billion to US$1.2 billion. "The US$9.8 billion represents the estimated total investment for the entire battery ecosystem. Of that amount, approximately US$1.1 to 1.2 billion has already been realised in the HLI battery cell project," he said.
HLI is an electric vehicle battery cell factory owned by a consortium of LG Energy Solution and Hyundai Motor Group, inaugurated by Indonesia's seventh President Joko Widodo on Wednesday (3/7/2024). The battery plant is the first and largest in Southeast Asia.
With the investment already realised, Nurul said there remains an investment requirement of approximately US$8.6 to 8.7 billion to complete the entire project. Nurul explained that Huayou is planned to fill the investment gap left by LG's departure from the battery project. However, Huayou will not work alone — they will collaborate with other partners currently under exploration.
"But what is clear is that Huayou's contribution is very clear — they will contribute to nearly the majority of this ecosystem," he said.
Minister of Energy and Mineral Resources Bahlil Lahadalia previously revealed that Chinese company Huayou would replace LG Energy Solution in the integrated nickel-based battery project spanning upstream to downstream operations in Indonesia. He therefore assured that the US$9.8 billion electric vehicle (EV) investment project, equivalent to approximately Rp142 trillion, would proceed as planned.
The former chairman of the Indonesian Young Entrepreneurs Association (HIPMI) said the project encompasses the integrated development of the EV battery supply chain, from mining through to battery production. As part of this investment commitment, on 3 July 2024, President Joko Widodo inaugurated Indonesia's first EV battery cell factory located in Karawang, West Java. The factory is a collaboration between Hyundai Motor Group and LG Energy Solution through PT HLI Green Power and has been operating with an annual production capacity of 10 Gigawatt hours (GWh).
Bahlil emphasised that the overall project has not undergone any fundamental changes. What has occurred is an adjustment of investment partners within the joint venture structure. "Conceptually, the construction of this grand package has not changed. Infrastructure and production plans remain in line with the initial roadmap. The change has only occurred with the investor partner, where LG is no longer continuing its involvement in the new JVs 1, 2, and 3, and has been replaced by a strategic partner from China, namely Huayou, together with our state-owned enterprises," Bahlil said in an official statement on Wednesday (23/4/2025).
Minister of Investment and Downstream Industries/Head of BKPM Rosan P Roeslani said Huayou would invest approximately US$8.6 billion or Rp145.2 trillion. "Huayou's investment is definitely US$8.6 billion," Rosan said after the Indonesia AI Day for Mining Industry 2025 event on Thursday (24/4/2025).
Contacted separately, Deputy for Investment Promotion at the Ministry of Investment and Downstream Industries/BKPM, Nurul Ichwan, said the total US$9.8 billion investment in the battery project is divided across four joint ventures. These joint ventures comprise upstream mining, HPAL smelter, precursor/cathode plant, and battery cell factory investments.
Currently, one of the four joint ventures is already operational — the battery cell project of PT Hyundai LG Indonesia (HLI) with an investment of US$1.1 billion to US$1.2 billion. "The US$9.8 billion represents the estimated total investment for the entire battery ecosystem. Of that amount, approximately US$1.1 to 1.2 billion has already been realised in the HLI battery cell project," he said.
HLI is an electric vehicle battery cell factory owned by a consortium of LG Energy Solution and Hyundai Motor Group, inaugurated by Indonesia's seventh President Joko Widodo on Wednesday (3/7/2024). The battery plant is the first and largest in Southeast Asia.
With the investment already realised, Nurul said there remains an investment requirement of approximately US$8.6 to 8.7 billion to complete the entire project. Nurul explained that Huayou is planned to fill the investment gap left by LG's departure from the battery project. However, Huayou will not work alone — they will collaborate with other partners currently under exploration.
"But what is clear is that Huayou's contribution is very clear — they will contribute to nearly the majority of this ecosystem," he said.
Minister of Energy and Mineral Resources Bahlil Lahadalia previously revealed that Chinese company Huayou would replace LG Energy Solution in the integrated nickel-based battery project spanning upstream to downstream operations in Indonesia. He therefore assured that the US$9.8 billion electric vehicle (EV) investment project, equivalent to approximately Rp142 trillion, would proceed as planned.
The former chairman of the Indonesian Young Entrepreneurs Association (HIPMI) said the project encompasses the integrated development of the EV battery supply chain, from mining through to battery production. As part of this investment commitment, on 3 July 2024, President Joko Widodo inaugurated Indonesia's first EV battery cell factory located in Karawang, West Java. The factory is a collaboration between Hyundai Motor Group and LG Energy Solution through PT HLI Green Power and has been operating with an annual production capacity of 10 Gigawatt hours (GWh).
Bahlil emphasised that the overall project has not undergone any fundamental changes. What has occurred is an adjustment of investment partners within the joint venture structure. "Conceptually, the construction of this grand package has not changed. Infrastructure and production plans remain in line with the initial roadmap. The change has only occurred with the investor partner, where LG is no longer continuing its involvement in the new JVs 1, 2, and 3, and has been replaced by a strategic partner from China, namely Huayou, together with our state-owned enterprises," Bahlil said in an official statement on Wednesday (23/4/2025).