President Prabowo Subianto summoned Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia to the Merdeka Palace on Thursday, May 22, 2025 to discuss the formal transition of leadership in Indonesia’s landmark electric vehicle (EV) battery project, valued at US$9.8 billion (Rp165.3 trillion). Chinese battery manufacturer Huayou has officially replaced South Korea’s LG Energy Solution (LGES) in the consortium.

Bahlil confirmed that the government has formally ended its partnership with LGES and appointed Huayou as the new strategic partner.

“From the beginning, we had already decided to end our collaboration with LG and move forward with Huayou. That process is complete, and I’m here to report this to the President,” Bahlil said before entering the palace.

Although LGES is no longer part of the EV battery consortium, the South Korean company had already invested around US$1.2 billion in the project's first phase, which includes the development of a 10 GWh battery production facility. The remaining US$8 billion in investment commitment will now be taken over by Huayou.

"I personally signed the termination letter. The transition of investment responsibilities is what we’re finalizing today," Bahlil said.

With this shift, Huayou has now assumed the lead role in what is known as the Proyek Titan, Indonesia’s flagship EV battery initiative. The Chinese firm was considered a suitable replacement due to its comparable technological capabilities and successful experience managing similar operations in the Weda Bay Industrial Park, North Maluku. Huayou had also expressed interest in joining Proyek Titan as early as 2024.

As the new lead, Huayou will collaborate with several major Indonesian state-owned enterprises, including Indonesia Battery Corporation (IBC), PT Aneka Tambang (Antam), PT Pertamina, and PT PLN.

Earlier, Minister of Investment and Downstreaming Rosan Roeslani clarified that LGES was officially removed from the project by the ESDM Ministry on January 31, 2025 − refuting earlier reports suggesting LGES had voluntarily withdrawn.

“The decision was based on the ESDM Ministry’s letter dated January 31, 2025, due to prolonged negotiations,” Rosan during a press briefing at the Merdeka Palace on April 23, 2025.

Rosan cited that operational discussions for Proyek Titan have been underway since 2020, with LGES initially signing onto the broader Indonesia Grand Package, a comprehensive investment deal covering the entire EV battery supply chain. However, after five years of slow progress and no binding agreements, the government decided to pivot.

“The government wants this project to move forward efficiently and with clear direction,” Rosan emphasized.

The replacement of LGES with Huayou marks a significant shift in Indonesia’s EV strategy, aligning with President Prabowo’s vision of fast-tracking the nation's energy transition and establishing Indonesia as a major global hub for EV battery manufacturing.