A consortium led by LG, including LG Energy Solution, LG Chem, and LX International, has decided to withdraw from a proposed electric vehicle (EV) battery supply chain project in Indonesia. The project was valued at approximately 11 trillion Korean won, or about $7.7 billion. Initially, the consortium aimed to establish an "end-to-end value chain" for EV batteries in collaboration with the Indonesian government and state-owned enterprises. This chain would span from raw material procurement to the production of precursors, cathode materials, and battery manufacturing.
Indonesia, as the world's largest nickel producer, plays a crucial role in the EV battery industry, given nickel's importance in battery production. However, industry insiders indicate that shifts in the industrial landscape, particularly a temporary global slowdown in EV demand, have led the consortium to withdraw from the project after consultations with the Indonesian government.
Despite this withdrawal, LG Energy Solution (SMCI, Financial) will continue its existing ventures, such as the HLI Green Power battery plant in partnership with Hyundai Motor Group.
