TEMPO.CO, Jakarta - President Prabowo Subianto holds a limited meeting with several ministers in economic affairs at Merdeka Palace, Jakarta, on Thursday, May 22, 2025. The meeting discusses electric vehicle (EV) battery cooperation plans with China-based company Huayou.
Minister of Energy and Mineral Resources Bahlil Lahadalia said the cooperation plan comes after the termination of the working relationship with a South Korean-led consortium by LG.
"From the beginning, we have decided to end our relationship with LG and will work with Huayou," said Bahlil at the Presidential Palace complex on Thursday, May 22, adding that the new partnership is a "done deal."
Bahlil stated that the Indonesian government has invested US$9.8 billion in the electric car battery industry in Indonesia. The government has previously invested US$1.2 billion with LG in the first phase, and US$8 billion will be transferred from LG to Huayou for the new partnership.
"This is what we will finalize today. But in principle, the termination letter with LG has been sent," he said. "I was the one who approved the letter."
Besides Bahlil, Coordinating Minister for Economic Affairs Airlangga Hartarto, Minister of State-Owned Enterprises Erick Thohir, and Deputy Minister of Industry Faisol Riza were also present at the meeting.
The LG-led South Korean consortium announced the cancellation of the electric vehicle battery supply chain project in Indonesia on Friday, April 18. The project was valued at 11 trillion won, or US$7.7 billion.
The LG-led project for the EV battery supply chain in Indonesia was intended to cover the entire process from raw material procurement to the production of precursors, cathode materials, and battery cell production. Indonesia is known as the world's largest nickel producer, the main raw material for electric vehicle batteries.
A senior official from LG Energy Solution stated that the decision to withdraw from the project was made after consulting with the Indonesian government. He mentioned that it was agreed due to shifts in the industry landscape, especially with what is referred to as the "electric vehicle gap," which refers to a temporary slowdown in global demand.
Melynda Dwi Puspita contributed to the writing of this article.
Editor’s Choice: Energy Minister Assures LG's Exit Won't Impede Indonesia's EV Project
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