Investment Ministry to Meet China's Huayou on EV Battery Ecosystem Consortium
Jakarta (ANTARA) - The Ministry of Investment and Downstream Industry/Investment Coordinating Board (BKPM) has announced it will shortly hold a meeting with Huayou, a Chinese company, to discuss the electric vehicle (EV) battery ecosystem consortium project previously led by LG.
"We are about to meet, God willing, if not this week then next week, we will meet with the Huayou side to discuss this matter and finalise plans," said Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment and Downstream Industry/BKPM, in Jakarta on Thursday.
Nurul Ichwan explained that following confirmation of LG's departure from the consortium, his office would draw up a new design and plan the involvement of other parties in the domestic EV battery ecosystem facility.
"We will then facilitate the formation of the joint venture," he said.
He had previously explained that the EV battery project, dubbed the Indonesia Grand Package, has already seen US$1.2 billion (Rp20.2 trillion) in realised investment. Huayou is expected to fill the bulk of the remaining investment worth US$8.6 billion (Rp145.2 trillion), through four joint ventures.
The joint ventures relate to investments in nickel mining, precursor manufacturing, cathode, anode, cell battery, battery pack, and battery recycling.
"Huayou certainly won't be alone — they will work with other partners whom we will also try to approach," he said.
Minister of Investment and Downstream Industry Rosan Perkasa Roeslani explained that LG Energy Solution did not withdraw from its investments in the battery ecosystem project of its own accord; rather, it was the Indonesian Government that asked LG to step back because negotiations had dragged on for too long.
Rosan said negotiations with LG had been running for five years since 2020.
"It was said that LG was the one to pull out, but more precisely it was us who made the decision. This was based on a letter dated 31 January 2025 issued by the Ministry of Energy and Mineral Resources of the Republic of Indonesia. Why was the letter issued? Because the negotiations had gone on for far too long, whilst we wanted everything to proceed well and quickly, given that negotiations had already lasted five years," Rosan said during a press conference at the Presidential Office in Jakarta on Wednesday evening (23/4).
Rosan added that the letter was subsequently issued to LG because Chinese investor Huayou had expressed its desire to invest in the battery ecosystem sector. Huayou's interest in joining the battery project consortium in Indonesia was first disclosed in 2024.
"We are about to meet, God willing, if not this week then next week, we will meet with the Huayou side to discuss this matter and finalise plans," said Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment and Downstream Industry/BKPM, in Jakarta on Thursday.
Nurul Ichwan explained that following confirmation of LG's departure from the consortium, his office would draw up a new design and plan the involvement of other parties in the domestic EV battery ecosystem facility.
"We will then facilitate the formation of the joint venture," he said.
He had previously explained that the EV battery project, dubbed the Indonesia Grand Package, has already seen US$1.2 billion (Rp20.2 trillion) in realised investment. Huayou is expected to fill the bulk of the remaining investment worth US$8.6 billion (Rp145.2 trillion), through four joint ventures.
The joint ventures relate to investments in nickel mining, precursor manufacturing, cathode, anode, cell battery, battery pack, and battery recycling.
"Huayou certainly won't be alone — they will work with other partners whom we will also try to approach," he said.
Minister of Investment and Downstream Industry Rosan Perkasa Roeslani explained that LG Energy Solution did not withdraw from its investments in the battery ecosystem project of its own accord; rather, it was the Indonesian Government that asked LG to step back because negotiations had dragged on for too long.
Rosan said negotiations with LG had been running for five years since 2020.
"It was said that LG was the one to pull out, but more precisely it was us who made the decision. This was based on a letter dated 31 January 2025 issued by the Ministry of Energy and Mineral Resources of the Republic of Indonesia. Why was the letter issued? Because the negotiations had gone on for far too long, whilst we wanted everything to proceed well and quickly, given that negotiations had already lasted five years," Rosan said during a press conference at the Presidential Office in Jakarta on Wednesday evening (23/4).
Rosan added that the letter was subsequently issued to LG because Chinese investor Huayou had expressed its desire to invest in the battery ecosystem sector. Huayou's interest in joining the battery project consortium in Indonesia was first disclosed in 2024.