China's Huayou Ready to Replace LG in Indonesia's EV Battery Project as Government Opens Door to New Investors
The Indonesian government is opening opportunities for new investors in the strategic electric vehicle battery sector. Following LG's withdrawal from one of its major projects, Chinese company Huayou (Zhejiang Huayou Cobalt) has declared its readiness to take over LG's role and expand its investment in Indonesia.
Minister of Downstreaming and Investment/Head of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, said that Huayou, which has already invested in the Morowali industrial zone in Central Sulawesi and Weda Bay in North Maluku, has held direct meetings with the Indonesian government to discuss this strategic opportunity.
"Huayou, which has already invested in Morowali and Weda Bay in Sulawesi and North Maluku, intends to replace LG's position. We have already met with Huayou — even on Saturday evening we met with their leadership, including their CEO and Chairman who came to see us," Rosan revealed at a press conference at the Ministry of Downstreaming/BKPM office in Jakarta on Tuesday (29 April 2025).
According to him, intensive discussions between the government and Huayou have been progressing smoothly. Dialogue is planned to continue in May 2025 to discuss further details of the cooperation.
"We met and talked, and God willing we will continue these discussions in May to follow up. But essentially, they are ready to come in and realise the investment we call the grand package, as the amount is substantial, in order to realise targets that may have been delayed over the past five years," he continued.
He explained that although LG has reportedly withdrawn from one part of the project, the South Korean company continues to demonstrate strong commitment to investment in Indonesia. The government disclosed that LG plans to undertake a further expansion worth US$1.7 billion in the electric vehicle battery cell production sector.
"LG will also carry out an expansion of US$1.7 billion. I am confident this development can be realised quickly because we are actively speaking with them and they have responded very positively, and wish to meet with us again soon regarding the second phase of investment in electric vehicle battery cells," he added.
The moves by Huayou and LG demonstrate that Indonesia remains a strategic global destination for the development of the electric vehicle battery ecosystem, particularly given its rich nickel resources and strong government support.
Minister of Downstreaming and Investment/Head of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, said that Huayou, which has already invested in the Morowali industrial zone in Central Sulawesi and Weda Bay in North Maluku, has held direct meetings with the Indonesian government to discuss this strategic opportunity.
"Huayou, which has already invested in Morowali and Weda Bay in Sulawesi and North Maluku, intends to replace LG's position. We have already met with Huayou — even on Saturday evening we met with their leadership, including their CEO and Chairman who came to see us," Rosan revealed at a press conference at the Ministry of Downstreaming/BKPM office in Jakarta on Tuesday (29 April 2025).
According to him, intensive discussions between the government and Huayou have been progressing smoothly. Dialogue is planned to continue in May 2025 to discuss further details of the cooperation.
"We met and talked, and God willing we will continue these discussions in May to follow up. But essentially, they are ready to come in and realise the investment we call the grand package, as the amount is substantial, in order to realise targets that may have been delayed over the past five years," he continued.
He explained that although LG has reportedly withdrawn from one part of the project, the South Korean company continues to demonstrate strong commitment to investment in Indonesia. The government disclosed that LG plans to undertake a further expansion worth US$1.7 billion in the electric vehicle battery cell production sector.
"LG will also carry out an expansion of US$1.7 billion. I am confident this development can be realised quickly because we are actively speaking with them and they have responded very positively, and wish to meet with us again soon regarding the second phase of investment in electric vehicle battery cells," he added.
The moves by Huayou and LG demonstrate that Indonesia remains a strategic global destination for the development of the electric vehicle battery ecosystem, particularly given its rich nickel resources and strong government support.