Minister of Investment and Downstream/Head of the Investment Coordinating Board (BKPM), Rosan P. Roeslani, says that Indonesia’s electric vehicle (EV) battery ecosystem project will continue with a new partner following the decision by South Korea’s LG Energy Solution to partially withdraw its US$9.8 billion investment in the project.
The large-scale project comprises four joint ventures (JVs) covering the entire EV battery supply chain − from nickel mining, precursor and cathode production, to battery cells, packs, and recycling. LG had completed the fourth JV, focusing on battery cell production, with an investment of $1.1 billion.
“To clarify, LG has not withdrawn from the entire project. They completed the fourth JV. But because negotiations had dragged on for five years, we decided to move forward with a different partner to keep the project on track,” Rosan told a press conference at the Presidential Palace in Jakarta on Wednesday, April 23, 2025.
The decision was formalized in a letter dated January 31, 2025, sent by the Ministry of Energy and Mineral Resources (ESDM) Bahlil Lahadalia to the CEOs of LG Chem and LG Energy Solution. The new partner replacing LG is Huayou, a Chinese company with existing investments in Indonesia’s nickel processing sector, particularly in Weda Bay, Central Halmahera regency, North Maluku.
“Huayou is already well-acquainted with the industry and has the technology and capacity to take over seamlessly. They were previously part of the consortium and will now lead it,” Rosan cited.
The total investment value of US$9.8 billion remains unchanged, and the joint ventures continue to involve Indonesian state-owned entities including Indonesia Battery Corporation (IBC) and State mining company PT Aneka Tambang (Antam).
Rosan emphasized that the continued progress of the project reflects international confidence in Indonesia’s investment climate, bolstered by political stability and strategic industrial policy.
“The figures don’t lie, foreign investors are staying and new partners are coming in. This is a strong signal of trust in our economy,” he said.
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