This negotiation phase aligns with the approaching completion target of the electric vehicle (EV) battery plant by PT Hyundai LG Industry (HLI) Green Power, located in Karawang Regency, West Java, scheduled for February 2024.

During a statement in Jakarta on Monday (December 11, 2023), Toto Nugroho, President Director of IBC, shared insights, revealing that LG is preparing to transition from battery cell production to cathodes. The ongoing negotiations aim to facilitate LG's investment in the Batang region.

The estimated investment for the cathode manufacturing project is anticipated to range between US$600 million and US$800 million, equivalent to an impressive IDR 12.48 trillion, based on an assumed exchange rate of IDR 15,605 per US dollar.

The proposed timeline for LG's investment execution in the cathode facility is set for January 2024, marking the initiation of the initial construction phase.

In addition to this development, Toto provided further details on LG's recent commitment to enhance the installed capacity for EV battery production in Karawang.

This expansion involves an additional 20 gigawatt-hours (GWh), effectively doubling the current capacity of 10 GWh. This commitment is integral to the downstream joint venture between LG and IBC.

The decision regarding the capacity increase is expected to be finalized post the effective commencement of initial production from the existing Karawang plant in February 2024.

Toto emphasized a phased approach, stating, "We are focusing on the initial 10 GWh because it is ready for operations. Following the operational phase, LG expresses the intention to scale up the production capacity. However, an official announcement from LG Korea is awaited to formalize this expansion plan."

As widely known, the LG Consortium, a key participant in the Titan downstream project, has pledged a substantial investment of US$8 billion, equivalent to an impressive IDR 122.79 trillion.

This investment stands as a significant testament to the collaborative efforts shaping the landscape of battery production and electric mobility in the region.