China's Huayou to Replace South Korea's LG in Indonesia's US$9.8 Billion EV Battery Investment
JAKARTA — Investment and Downstream Industries Minister/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani revealed that Chinese company Huayou will replace South Korea's LG in the development of electric vehicle (EV) battery investment in Indonesia.
Rosan stressed that the South Korean consortium led by LG has not cancelled its investment but has rather completed all stages of its investment commitments.
"If I may explain briefly, LG's investment totalled US$9.8 billion. This was indeed a large investment covering the entire ecosystem from mining — nickel matte, nickel sulphur, precursor, cathode, anode, battery cell, cell pack through to battery recycling," Rosan said in a press statement at the Presidential Palace in Jakarta on Wednesday (23/4/2025).
Rosan explained that the investment ecosystem was divided into four stages, all of which LG has completed. "So the news about them withdrawing is not accurate. They have already carried out and completed stage four, valued at US$1.1 billion," he said.
Following LG's completion of all stages, Rosan noted that the government, through Energy and Mineral Resources Minister Bahlil Lahadalia, issued a letter dated 31 January 2025 to the heads of LG Chem and LGES, after rather tough negotiations spanning five years.
"The letter was issued because Huayou expressed interest in investing, as they already possess the technology and would simply replace LG's position," Rosan added.
Rosan confirmed that the total US$9.8 billion EV battery development investment in Indonesia remains unchanged and will be carried out in partnership with PT Antam (Persero) and PT Indonesia Battery Corporation (IBC).
"If you ask why Huayou? They have previously invested even larger amounts. And where have they invested? In the Weda Bay area (North Maluku)," said Rosan.
"They are very familiar with the landscape and at the same time already have the sources for future development. That is why Huayou is planned to come in to replace LG," he explained.
Rosan stressed that the South Korean consortium led by LG has not cancelled its investment but has rather completed all stages of its investment commitments.
"If I may explain briefly, LG's investment totalled US$9.8 billion. This was indeed a large investment covering the entire ecosystem from mining — nickel matte, nickel sulphur, precursor, cathode, anode, battery cell, cell pack through to battery recycling," Rosan said in a press statement at the Presidential Palace in Jakarta on Wednesday (23/4/2025).
Rosan explained that the investment ecosystem was divided into four stages, all of which LG has completed. "So the news about them withdrawing is not accurate. They have already carried out and completed stage four, valued at US$1.1 billion," he said.
Following LG's completion of all stages, Rosan noted that the government, through Energy and Mineral Resources Minister Bahlil Lahadalia, issued a letter dated 31 January 2025 to the heads of LG Chem and LGES, after rather tough negotiations spanning five years.
"The letter was issued because Huayou expressed interest in investing, as they already possess the technology and would simply replace LG's position," Rosan added.
Rosan confirmed that the total US$9.8 billion EV battery development investment in Indonesia remains unchanged and will be carried out in partnership with PT Antam (Persero) and PT Indonesia Battery Corporation (IBC).
"If you ask why Huayou? They have previously invested even larger amounts. And where have they invested? In the Weda Bay area (North Maluku)," said Rosan.
"They are very familiar with the landscape and at the same time already have the sources for future development. That is why Huayou is planned to come in to replace LG," he explained.