Minister Bahlil Denies LG Pulled Out of EV Battery Investment, Says He Cancelled the Deal
JAKARTA, investor.id - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia denied reports suggesting that South Korean company LG had decided to withdraw from its electric vehicle (EV) battery development investment in Indonesia. Bahlil stated that it was he who decided to cancel LG's investment in EV development, not the other way around.
"Regarding the information suggesting that LG pulled out, I want to say that is not true. The truth is that I, as the head of the task force at the time, decided to cancel what LG was doing because it was taking too long," Bahlil explained after meeting President Prabowo Subianto at the Presidential Palace in Jakarta on Thursday (22/5/2025).
However, Bahlil did not elaborate further on what he meant by the investment with LG taking too long. He confirmed that he had discussed the decision with Investment and Downstreaming Minister/BKPM Head Rosan Roeslani and State-Owned Enterprises Minister Erick Thohir.
"This is the clear information. Therefore, even amid the current global economic conditions, investment prospects in downstreaming, particularly in critical minerals, remain highly relevant to what the global market demands," Bahlil said.
Bahlil explained that the total investment for the EV battery project amounted to US$9.8 billion or Rp159.99 trillion (at an exchange rate of Rp16,326 per US dollar). In the first phase, LG had realised investments worth US$1.2 billion or Rp19.59 trillion for a capacity of 10 gigawatts. However, the remaining investment of US$8 billion or Rp130.61 trillion will be continued by Huayou.
The partnership with Huayou marks a new chapter in the development of Indonesia's EV battery ecosystem. The government hopes this collaboration will accelerate the development of the national electric vehicle industry.
"Regarding the information suggesting that LG pulled out, I want to say that is not true. The truth is that I, as the head of the task force at the time, decided to cancel what LG was doing because it was taking too long," Bahlil explained after meeting President Prabowo Subianto at the Presidential Palace in Jakarta on Thursday (22/5/2025).
However, Bahlil did not elaborate further on what he meant by the investment with LG taking too long. He confirmed that he had discussed the decision with Investment and Downstreaming Minister/BKPM Head Rosan Roeslani and State-Owned Enterprises Minister Erick Thohir.
"This is the clear information. Therefore, even amid the current global economic conditions, investment prospects in downstreaming, particularly in critical minerals, remain highly relevant to what the global market demands," Bahlil said.
Bahlil explained that the total investment for the EV battery project amounted to US$9.8 billion or Rp159.99 trillion (at an exchange rate of Rp16,326 per US dollar). In the first phase, LG had realised investments worth US$1.2 billion or Rp19.59 trillion for a capacity of 10 gigawatts. However, the remaining investment of US$8 billion or Rp130.61 trillion will be continued by Huayou.
The partnership with Huayou marks a new chapter in the development of Indonesia's EV battery ecosystem. The government hopes this collaboration will accelerate the development of the national electric vehicle industry.