LG Not Fully Withdrawing from EV Investment, Minister Clarifies; Huayou Named as Replacement
TEMPO.CO, Jakarta - Investment and Downstream Industries Minister/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani has clarified the widely reported withdrawal of South Korean company LG from electric vehicle investment in Indonesia. According to Rosan, LG has not withdrawn from all its investments.
"Not all their programmes have stopped. The withdrawal is actually only from Joint Ventures (JV) I, II, and III. Meanwhile, JV IV is already operational and completed. The JV IV investment is in battery cells worth US$1.1 billion," Rosan told reporters at the BKPM office in South Jakarta on Tuesday, 29 April 2025.
Rosan said LG has not fully withdrawn as an electric vehicle development investor. He noted the company even wishes to increase its JV IV investment by US$1.7 billion for further development.
"I want to convey that LG's commitment remains substantial. A concrete example is that they will invest in the development of JV IV. So the total investment could reach US$2.8 billion, in line with the initial target for JV IV," Rosan said.
According to him, electric vehicle development is divided into four joint ventures with various investment partners. He cited JV I as relating to mining, with PT Aneka Tambang Tbk as the primary investor. JV II through JV IV each have their own respective programmes.
On a separate occasion, Energy and Mineral Resources Minister Bahlil Lahadalia said a replacement for LG has been found to continue the electric vehicle development investment. The company is Huayou.
Bahlil said Huayou's work on the project would not deviate from the established roadmap. "Conceptually, nothing has changed in the construction of this grand package. Infrastructure and production plans remain in accordance with the original roadmap. LG is no longer continuing and has been replaced by Huayou," Bahlil said in a written statement on Wednesday, 23 April 2025.
According to him, investor changes in mega-projects are commonplace. He urged the public and business community in Indonesia not to worry about LG's departure from the electric vehicle battery investment.
Furthermore, he said the electric vehicle (EV) project in Indonesia has already commenced and must proceed according to the original plan. "Nothing has changed from the original objective, which is to make Indonesia a global centre for the electric vehicle industry," Bahlil said.
For reference, Huayou was established in 1994 and is headquartered in Tongxiang, Zhejiang, China. The founder and Chairman of the Board of Directors of Huayou Holding Group is Chen Xuehua, whilst the position of Senior Vice President (SVP) of Huayou Holding Group and President of Huayou Indonesia Nickel Industry Group is held by Gao Baojun.
"Not all their programmes have stopped. The withdrawal is actually only from Joint Ventures (JV) I, II, and III. Meanwhile, JV IV is already operational and completed. The JV IV investment is in battery cells worth US$1.1 billion," Rosan told reporters at the BKPM office in South Jakarta on Tuesday, 29 April 2025.
Rosan said LG has not fully withdrawn as an electric vehicle development investor. He noted the company even wishes to increase its JV IV investment by US$1.7 billion for further development.
"I want to convey that LG's commitment remains substantial. A concrete example is that they will invest in the development of JV IV. So the total investment could reach US$2.8 billion, in line with the initial target for JV IV," Rosan said.
According to him, electric vehicle development is divided into four joint ventures with various investment partners. He cited JV I as relating to mining, with PT Aneka Tambang Tbk as the primary investor. JV II through JV IV each have their own respective programmes.
On a separate occasion, Energy and Mineral Resources Minister Bahlil Lahadalia said a replacement for LG has been found to continue the electric vehicle development investment. The company is Huayou.
Bahlil said Huayou's work on the project would not deviate from the established roadmap. "Conceptually, nothing has changed in the construction of this grand package. Infrastructure and production plans remain in accordance with the original roadmap. LG is no longer continuing and has been replaced by Huayou," Bahlil said in a written statement on Wednesday, 23 April 2025.
According to him, investor changes in mega-projects are commonplace. He urged the public and business community in Indonesia not to worry about LG's departure from the electric vehicle battery investment.
Furthermore, he said the electric vehicle (EV) project in Indonesia has already commenced and must proceed according to the original plan. "Nothing has changed from the original objective, which is to make Indonesia a global centre for the electric vehicle industry," Bahlil said.
For reference, Huayou was established in 1994 and is headquartered in Tongxiang, Zhejiang, China. The founder and Chairman of the Board of Directors of Huayou Holding Group is Chen Xuehua, whilst the position of Senior Vice President (SVP) of Huayou Holding Group and President of Huayou Indonesia Nickel Industry Group is held by Gao Baojun.