Huayou Partners with Chinese Firm to Continue EV Battery Project After LG Replacement
Jakarta (ANTARA) - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has stated that Huayou, a Chinese company, is partnering with another Chinese firm to continue the electric vehicle battery project previously led by LG Energy Solution.
"The partner will build the next 20 gigawatt hours (GWh). We will announce it later — this is one of the top seven companies in the world. From China," said Bahlil when met at the ESDM Ministry in Jakarta on Monday.
Bahlil explained that Huayou had been a partner of LG in the Indonesia Grand Package project, which targets the construction of EV batteries with a capacity of 30 GWh. In the course of the project, LG had already built the first 10 GWh, leaving 20 GWh remaining. Huayou's role has been in providing mining technology, smelters and other components.
"LG's technology is at the downstream end, which is why the grand package was established," he said.
The government considers that LG was taking too long to develop the project. Therefore, in order to accelerate the development of the EV battery ecosystem, the government replaced LG.
"It is not that we did not want them (LG), rather they were taking too long," said Bahlil.
Huayou's partner will continue the construction of the remaining 20 GWh. When asked why Huayou's partner is from China, Bahlil explained that the government does not discriminate based on a partner's country of origin. As long as they are willing to help develop the EV battery ecosystem in Indonesia, the government approves.
"We are not looking at whether it is China, Arab, European, Korean or anything else that wants to come to Indonesia. I do not differentiate now," he said.
Previously, the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) stated that Huayou, the Chinese company replacing LG in the EV project, would collaborate with another partner to complete the project.
BKPM Deputy for Investment Promotion Nurul Ichwan explained that the EV battery project named the Indonesia Grand Package has been realised to the tune of 1.2 billion US dollars (Rp20.2 trillion), and Huayou will fill most of the remaining investment amounting to 8.6 billion US dollars (Rp145.2 trillion).
BKPM will soon hold a meeting with Huayou to discuss the matter.
"The partner will build the next 20 gigawatt hours (GWh). We will announce it later — this is one of the top seven companies in the world. From China," said Bahlil when met at the ESDM Ministry in Jakarta on Monday.
Bahlil explained that Huayou had been a partner of LG in the Indonesia Grand Package project, which targets the construction of EV batteries with a capacity of 30 GWh. In the course of the project, LG had already built the first 10 GWh, leaving 20 GWh remaining. Huayou's role has been in providing mining technology, smelters and other components.
"LG's technology is at the downstream end, which is why the grand package was established," he said.
The government considers that LG was taking too long to develop the project. Therefore, in order to accelerate the development of the EV battery ecosystem, the government replaced LG.
"It is not that we did not want them (LG), rather they were taking too long," said Bahlil.
Huayou's partner will continue the construction of the remaining 20 GWh. When asked why Huayou's partner is from China, Bahlil explained that the government does not discriminate based on a partner's country of origin. As long as they are willing to help develop the EV battery ecosystem in Indonesia, the government approves.
"We are not looking at whether it is China, Arab, European, Korean or anything else that wants to come to Indonesia. I do not differentiate now," he said.
Previously, the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) stated that Huayou, the Chinese company replacing LG in the EV project, would collaborate with another partner to complete the project.
BKPM Deputy for Investment Promotion Nurul Ichwan explained that the EV battery project named the Indonesia Grand Package has been realised to the tune of 1.2 billion US dollars (Rp20.2 trillion), and Huayou will fill most of the remaining investment amounting to 8.6 billion US dollars (Rp145.2 trillion).
BKPM will soon hold a meeting with Huayou to discuss the matter.