China's Huayou Set to Replace LG Energy Solution in Indonesia's EV Battery Supply Chain Project
Jakarta, CNBC Indonesia - Investment and Downstreaming Minister and Head of the Investment Coordinating Board (BKPM) Rosan Roeslani said he has met with Chinese company Huayou to replace South Korean firm LG Energy Solution (LGES) in Indonesia's electric vehicle battery supply chain project.
Rosan stated that he met with Huayou representatives on Saturday (26/4/2025) last week, with follow-up discussions planned for May.
"They came on Saturday evening. And God willing, we will continue more detailed talks in May," Rosan said at a press conference at his office in Jakarta on Tuesday (29/4/2025).
Rosan revealed that his discussions with the Chinese company centred on continuing LG's planned projects in Indonesia.
"In May we will follow up. But essentially they are ready to come in and realise the investment that we call the grand package," he added.
Rosan also confirmed that LG has withdrawn from its investment plans in three joint ventures (JVs). However, a fourth JV is already operational and continues to progress.
The operational project is a collaboration between Hyundai Motor Group and LG Energy Solution through PT HLI Green Power, which has an annual production capacity of 10 Gigawatt hours (GWh).
Of LG's total planned investment of US$9.8 billion in Indonesia's battery ecosystem, LG has already invested US$1.1 billion in the HLI Green Power project. Rosan noted that LG will add a further US$1.7 billion to this project, bringing total investment in the electric vehicle battery plant in Karawang, West Java, to US$2.8 billion, or approximately Rp46.98 trillion.
"The withdrawal is actually only from joint ventures one, two and three. The fourth is already running and completed. That investment is worth US$1.1 billion — that's the battery cell project," he stressed.
"So the total investment could reach US$2.8 billion once the fourth joint venture is completed, which is in line with the original target for that joint venture," he added.
The PT HLI Green Power electric vehicle battery plant in Karawang officially commenced operations in April 2024 and was inaugurated by Indonesia's seventh President Joko Widodo (Jokowi) on 3 July 2024.
Rosan stated that he met with Huayou representatives on Saturday (26/4/2025) last week, with follow-up discussions planned for May.
"They came on Saturday evening. And God willing, we will continue more detailed talks in May," Rosan said at a press conference at his office in Jakarta on Tuesday (29/4/2025).
Rosan revealed that his discussions with the Chinese company centred on continuing LG's planned projects in Indonesia.
"In May we will follow up. But essentially they are ready to come in and realise the investment that we call the grand package," he added.
Rosan also confirmed that LG has withdrawn from its investment plans in three joint ventures (JVs). However, a fourth JV is already operational and continues to progress.
The operational project is a collaboration between Hyundai Motor Group and LG Energy Solution through PT HLI Green Power, which has an annual production capacity of 10 Gigawatt hours (GWh).
Of LG's total planned investment of US$9.8 billion in Indonesia's battery ecosystem, LG has already invested US$1.1 billion in the HLI Green Power project. Rosan noted that LG will add a further US$1.7 billion to this project, bringing total investment in the electric vehicle battery plant in Karawang, West Java, to US$2.8 billion, or approximately Rp46.98 trillion.
"The withdrawal is actually only from joint ventures one, two and three. The fourth is already running and completed. That investment is worth US$1.1 billion — that's the battery cell project," he stressed.
"So the total investment could reach US$2.8 billion once the fourth joint venture is completed, which is in line with the original target for that joint venture," he added.
The PT HLI Green Power electric vehicle battery plant in Karawang officially commenced operations in April 2024 and was inaugurated by Indonesia's seventh President Joko Widodo (Jokowi) on 3 July 2024.