LG cancels US$7.7 billion EV battery project in Indonesia

  • Published on 21/04/2025 GMT+7

  • Reading time 2 minutes

  • Author: Gusty Da Costa

  • Editor: Imanuddin Razak

South Korean electric vehicle (EV) battery manufacturer LG and its consortium have withdrawn their planned investment in building an EV battery ecosystem in Indonesia. 

The project, valued at US$7.7 billion (approximately Rp128.84 trillion at an exchange rate of Rp16,856 per US$), has officially been cancelled after years of slow progress since its announcement in 2019.

According to Yonhap News Agency, the consortium, which includes LG Energy Solution, LG Chem, and LX International Corp along with Indonesian state-owned enterprises, has decided to halt the project due to shifting dynamics in the global EV industry and a potential slowdown in EV demand.

“Considering market conditions and the investment environment, we have decided to exit the project,” an official from LG Energy Solution stated, as quoted by Yonhap News Agency on Monday, April 21, 2025.

The cancelled project aimed to develop a full EV battery supply chain in Indonesia, covering raw material sourcing, precursor and cathode material production, and battery cell manufacturing.

Despite the withdrawal, LG confirmed that it will continue operating its existing EV battery ventures in Indonesia. This includes the ongoing joint project with Hyundai Motor Group — the HLI Green Power battery plant located in Karawang, West Java.

“We will maintain our current businesses in Indonesia, such as the Hyundai LG Indonesia Green Power (HLI Green Power) battery factory, our joint venture with Hyundai Motor Group,” the official added.

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