By Tri Luluk Lutfiana
Chinese firm Huayou will replace South Korea’s LG Energy Solution in a $9.8 billion integrated electric vehicle (EV) battery project in Indonesia, the country’s energy minister said on Wednesday, ensuring the project will proceed as planned despite the shift in partners.
The project spans the entire nickel-based battery value chain—from upstream mining to downstream battery production—and is a key pillar of Indonesia’s EV industrialization strategy.
Minister of Energy and Mineral Resources Bahlil Lahadalia emphasized that while LG has exited, the project’s roadmap remains intact. “The concept of the Grand Package development remains unchanged. The shift only involves the joint venture partners. LG will no longer participate in JV 1, 2, and 3, and is being replaced by a new strategic partner from China, Huayou, alongside Indonesian state-owned enterprises,” Bahlil said in a statement.
LG’s exit from the project follows the July 2024 inauguration of Indonesia’s first EV battery cell factory in Karawang, West Java—a joint effort by Hyundai Motor Group and LG Energy Solution through PT HLI Green Power. The facility has a production capacity of 10 GWh and is now operational.
Read also: Ministry confirms nickel battery project will proceed despite LG's withdrawal
Bahlil sought to allay concerns that geopolitical tensions or global economic uncertainty might derail the project. “We are moving forward with the next stage of investment, worth nearly US$8 billion. Groundbreaking is still planned for this year. There is no cancellation, no delay,” he said.
He added that changes in investor composition are not unusual in large-scale, long-term projects. “The government’s role is to ensure that all parties remain committed and that the transition process is smooth.”
Bahlil reiterated that the project remains central to Indonesia’s goal of becoming a global EV industry hub. “This project has already begun—part of it has been inaugurated and is in production. The rest will proceed on schedule.”
News of LG’s exit first surfaced on April 17, 2025, when Dilo Seno Widagdo, Director of Portfolio and Business Development at state-owned mining holding company MIND ID, confirmed the development. He did not elaborate on the reasons behind LG’s withdrawal, citing only that the negotiations failed to reach a final agreement.
The so-called Titan Project, previously led by LG, initially involved a South Korean consortium including LG Energy Solution, LG Chem, LG International, and Posco, working with China’s Huayou Holding and Indonesia’s Indonesia Battery Corporation (IBC).
The consortium’s investment commitment totaled US$9.8 billion, including: US$850 million for nickel mining, US$4 billion for HPAL (High-Pressure Acid Leach) smelters, US$1.8 billion for precursor and cathode plants, and US$3.2 billion for battery cell manufacturing
In light of LG’s exit, Dilo noted that Indonesia is now considering opening the investment opportunity to U.S. companies—part of a broader response to former U.S. President Donald Trump’s tariff policy, which saw Indonesia hit with a 32% import tariff.
Editing by Reiner Simanjuntak
