Huayou to Replace LG with US$8.6 Billion Investment in Indonesia's EV Battery Ecosystem
Stepping in as a replacement for LG, Huayou must commit a substantial investment and has been asked to work at a faster pace.
Rosan Roeslani, Minister of Investment and Downstreaming/Investment Coordinating Board (BKPM), revealed that the project is valued at US$9.8 billion (Rp165.5 trillion). Huayou will be responsible for filling the remaining investment of US$8.6 billion (Rp145.2 trillion).
"Their investment value is at least US$8.6 billion," said Rosan Roeslani, as reported by Antara on 24 April.
The figure was derived from the fact that the EV battery project known as the Indonesia Grand Package has already been realised to the tune of US$1.2 billion (Rp20.2 trillion). Huayou is therefore responsible for covering the bulk of the remaining investment totalling US$8.6 billion.
"Huayou won't be alone — they will certainly collaborate with other partners later. But what is clear is that they will contribute to almost the entire ecosystem," said Nurul Ichwan, Deputy for Investment Promotion at BKPM.
LG Energy Solution had previously withdrawn from the battery ecosystem development project, despite the South Korean manufacturer's commitment to invest in the project, which had been signed since 2020. The project was intended to cover the entire electric vehicle battery production process, from raw material supply to finished goods manufacturing.
However, the government later revealed that the company was actually asked to withdraw because construction progress was deemed too slow. Extensive negotiations had caused the work to take longer than it should have.
Nevertheless, LG managed to realise its investment in one of its joint venture projects worth US$1.1 billion (approximately Rp18.56 trillion).
Meanwhile, Bahlil Lahadalia, Minister of Energy and Mineral Resources (ESDM), stated that changing investors midway through is normal when working on large-scale projects.
"For us, the most important thing is that all partners remain committed and the government is present to ensure the transition process runs smoothly. The project is already underway — some parts have even been inaugurated and begun production, whilst the remainder will be overseen through to completion in line with targets," he affirmed.
Rosan Roeslani, Minister of Investment and Downstreaming/Investment Coordinating Board (BKPM), revealed that the project is valued at US$9.8 billion (Rp165.5 trillion). Huayou will be responsible for filling the remaining investment of US$8.6 billion (Rp145.2 trillion).
"Their investment value is at least US$8.6 billion," said Rosan Roeslani, as reported by Antara on 24 April.
The figure was derived from the fact that the EV battery project known as the Indonesia Grand Package has already been realised to the tune of US$1.2 billion (Rp20.2 trillion). Huayou is therefore responsible for covering the bulk of the remaining investment totalling US$8.6 billion.
"Huayou won't be alone — they will certainly collaborate with other partners later. But what is clear is that they will contribute to almost the entire ecosystem," said Nurul Ichwan, Deputy for Investment Promotion at BKPM.
LG Energy Solution had previously withdrawn from the battery ecosystem development project, despite the South Korean manufacturer's commitment to invest in the project, which had been signed since 2020. The project was intended to cover the entire electric vehicle battery production process, from raw material supply to finished goods manufacturing.
However, the government later revealed that the company was actually asked to withdraw because construction progress was deemed too slow. Extensive negotiations had caused the work to take longer than it should have.
Nevertheless, LG managed to realise its investment in one of its joint venture projects worth US$1.1 billion (approximately Rp18.56 trillion).
Meanwhile, Bahlil Lahadalia, Minister of Energy and Mineral Resources (ESDM), stated that changing investors midway through is normal when working on large-scale projects.
"For us, the most important thing is that all partners remain committed and the government is present to ensure the transition process runs smoothly. The project is already underway — some parts have even been inaugurated and begun production, whilst the remainder will be overseen through to completion in line with targets," he affirmed.