Indonesia Removes LG Energy Solution from US$9.8 Billion Battery Supply Chain Project After Five Years of Stalled Negotiations
JAKARTA - The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has addressed the departure of LG Energy Solution from a major battery supply chain ecosystem project in Indonesia, following protracted negotiations over five years.
Minister of Investment and Downstreaming/BKPM Rosan Roeslani said the government did not want the battery project to proceed slowly, prompting Indonesia to issue a letter requesting LG withdraw from the project.
"For a project of this scale, lengthy negotiations are naturally expected. We wanted this investment to proceed, so the project will continue with a replacement partner," said Rosan in a press statement on Wednesday (23/4/2025).
Rosan explained that the LG Joint Venture (JV) project had an investment value of US$9.8 billion for an ecosystem spanning mining, nickel matte processing, nickel sulphate, precursors, cathodes, anodes, battery cells, cell packs, and battery recycling.
However, LG's withdrawal will not affect the grand package project encompassing various consortia. The project is currently underway with US$1.15 billion in investment already disbursed.
"LG has also committed to continuing investment in other fields as well as in the same sector," he said.
Rosan clarified that LG's withdrawal was not at the company's request but was a decision by the Indonesian government, specifically the Ministry of Energy and Mineral Resources (ESDM).
"Amid rising geopolitical tensions, we have thankfully still met our investment targets, despite the news regarding LG," he explained.
LG's withdrawal from the Titan Project was first disclosed by MIND ID Director of Portfolio and Business Development Dilo Seno Widagdo in Jakarta on Thursday (17/4/2025). Dilo did not specifically explain the reasons behind LG's decision not to proceed with its investment plans, stating only that numerous factors prevented negotiations from reaching an agreement.
With LG's departure, Dilo revealed that his organisation would seek new investment partners. He mentioned an initiative to offer the battery investment to American companies as part of a negotiation package in response to US President Donald Trump's tariff policies.
Indonesia was hit with a 32 per cent reciprocal import tariff by Trump for being one of the contributors to the US trade deficit.
"The Titan Project didn't materialise. Now, this is one of the things we're offering as part of our regulatory advocacy — we're negotiating with the Americans, if they're willing," said Dilo.
Minister of Investment and Downstreaming/BKPM Rosan Roeslani said the government did not want the battery project to proceed slowly, prompting Indonesia to issue a letter requesting LG withdraw from the project.
"For a project of this scale, lengthy negotiations are naturally expected. We wanted this investment to proceed, so the project will continue with a replacement partner," said Rosan in a press statement on Wednesday (23/4/2025).
Rosan explained that the LG Joint Venture (JV) project had an investment value of US$9.8 billion for an ecosystem spanning mining, nickel matte processing, nickel sulphate, precursors, cathodes, anodes, battery cells, cell packs, and battery recycling.
However, LG's withdrawal will not affect the grand package project encompassing various consortia. The project is currently underway with US$1.15 billion in investment already disbursed.
"LG has also committed to continuing investment in other fields as well as in the same sector," he said.
Rosan clarified that LG's withdrawal was not at the company's request but was a decision by the Indonesian government, specifically the Ministry of Energy and Mineral Resources (ESDM).
"Amid rising geopolitical tensions, we have thankfully still met our investment targets, despite the news regarding LG," he explained.
LG's withdrawal from the Titan Project was first disclosed by MIND ID Director of Portfolio and Business Development Dilo Seno Widagdo in Jakarta on Thursday (17/4/2025). Dilo did not specifically explain the reasons behind LG's decision not to proceed with its investment plans, stating only that numerous factors prevented negotiations from reaching an agreement.
With LG's departure, Dilo revealed that his organisation would seek new investment partners. He mentioned an initiative to offer the battery investment to American companies as part of a negotiation package in response to US President Donald Trump's tariff policies.
Indonesia was hit with a 32 per cent reciprocal import tariff by Trump for being one of the contributors to the US trade deficit.
"The Titan Project didn't materialise. Now, this is one of the things we're offering as part of our regulatory advocacy — we're negotiating with the Americans, if they're willing," said Dilo.