LG Energy Solution Plans to Increase Battery Cell Factory Investment in Indonesia by US$1.7 Billion
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has revealed LG Energy Solution's plans to increase investment in its operational battery cell factory in Indonesia.
The project is the fourth joint venture (JV 4) in the development of the battery ecosystem supply chain in Indonesia, operated by PT Hyundai LG Indonesia (HLI) Green Power, which has been in operation since July 2024.
Investment Minister/BKPM Head Rosan Roeslani said LG remains fully committed to the expansion of the battery cell factory. To date, investment already in place amounts to US$1.1 billion, equivalent to approximately Rp18.46 trillion.
"They have already held preliminary discussions with us — they wish to add to their US$1.1 billion investment with a further US$1.7 billion [approximately Rp28.5 trillion] for the expansion of this investment," Rosan said at a press conference on Tuesday (29/4/2025).
He confirmed he would visit the factory the following morning to discuss the expansion plans further. He expressed appreciation for LG's concrete commitment to the battery cell factory located in Karawang, West Java.
Rosan affirmed that JV 4, a joint venture between Hyundai and LG, is one component of the grand package battery project plan that has been successfully realised. "The total investment for JV 4 could reach US$2.8 billion once completed, in line with the initial target," he explained.
However, LG has cancelled its investment in JV 1-3 within the megaproject. Rosan acknowledged that the grand package for Indonesia's battery ecosystem is a large transaction with a complex structure.
"LG's total investment was initially, if I'm not mistaken, US$9.8 billion divided into four parts. Each part has its own separate JV, because the value is very large and the partners are different," he said.
He explained that in JV 1, LG was a minority shareholder in an upstream mining project alongside Indonesian state-owned enterprise Aneka Tambang (ANTM). JV 2-3 involved battery raw material processing projects, namely an HPAL smelter and a precursor/cathode factory.
"The mined material is then processed into its own product called nickel matte, further produced into nickel sulphate, then into precursor, cathode, anode, then battery cells, battery packs, through to battery recycling — these are all different collaborations," he explained.
Rosan was not overly concerned about LG's withdrawal from JV 1-3, noting that tough negotiations on transactions of such magnitude are normal. Moreover, the government has found a replacement for LG in Zhejiang Huayou Cobalt Co.
"Huayou, which has already invested in Morowali and Weda Bay in Sulawesi and North Maluku, is interested in replacing LG's position. We have already met with Huayou," he said.
The project is the fourth joint venture (JV 4) in the development of the battery ecosystem supply chain in Indonesia, operated by PT Hyundai LG Indonesia (HLI) Green Power, which has been in operation since July 2024.
Investment Minister/BKPM Head Rosan Roeslani said LG remains fully committed to the expansion of the battery cell factory. To date, investment already in place amounts to US$1.1 billion, equivalent to approximately Rp18.46 trillion.
"They have already held preliminary discussions with us — they wish to add to their US$1.1 billion investment with a further US$1.7 billion [approximately Rp28.5 trillion] for the expansion of this investment," Rosan said at a press conference on Tuesday (29/4/2025).
He confirmed he would visit the factory the following morning to discuss the expansion plans further. He expressed appreciation for LG's concrete commitment to the battery cell factory located in Karawang, West Java.
Rosan affirmed that JV 4, a joint venture between Hyundai and LG, is one component of the grand package battery project plan that has been successfully realised. "The total investment for JV 4 could reach US$2.8 billion once completed, in line with the initial target," he explained.
However, LG has cancelled its investment in JV 1-3 within the megaproject. Rosan acknowledged that the grand package for Indonesia's battery ecosystem is a large transaction with a complex structure.
"LG's total investment was initially, if I'm not mistaken, US$9.8 billion divided into four parts. Each part has its own separate JV, because the value is very large and the partners are different," he said.
He explained that in JV 1, LG was a minority shareholder in an upstream mining project alongside Indonesian state-owned enterprise Aneka Tambang (ANTM). JV 2-3 involved battery raw material processing projects, namely an HPAL smelter and a precursor/cathode factory.
"The mined material is then processed into its own product called nickel matte, further produced into nickel sulphate, then into precursor, cathode, anode, then battery cells, battery packs, through to battery recycling — these are all different collaborations," he explained.
Rosan was not overly concerned about LG's withdrawal from JV 1-3, noting that tough negotiations on transactions of such magnitude are normal. Moreover, the government has found a replacement for LG in Zhejiang Huayou Cobalt Co.
"Huayou, which has already invested in Morowali and Weda Bay in Sulawesi and North Maluku, is interested in replacing LG's position. We have already met with Huayou," he said.