LG Energy Solution Withdraws from Indonesian EV Battery Project

JAKARTA (Reuters) – South Korea’s LG Energy Solution has formally withdrawn from a 142 trillion rupiah ($8.45 billion) electric vehicle battery project in Indonesia, the company announced on Monday.

LGES and the Indonesian government signed a deal on the so-called “Indonesia Grand Package” project in late 2020, which included investments across the EV battery supply chain.

> “Taking into account various factors, including market conditions and investment environment, we have agreed to formally withdraw from the Indonesia GP (Grand Package) project,” LGES stated.

However, the company mentioned its commitment to continue exploring various avenues of collaboration with the Indonesian government, focusing on the Indonesia battery joint venture, HLI Green Power.

HLI Green Power is a joint venture led by LGES and Hyundai Motor Group. Last year, it inaugurated Indonesia’s first battery cell production plant for EVs, achieving an annual capacity of 10 Gigawatt hours of battery cells, with plans for expansion in the second investment phase.

Indonesia’s investment ministry and related state companies, Aneka Tambang and Indonesia Battery Corporation, who were set to partner with LGES on the project, did not immediately respond to requests for comment.

($1 = 16,810.0000 rupiah)