LG Energy Solution (LGES) has officially withdrawn from a major electric vehicle (EV) battery manufacturing project in Indonesia, valued at 142 trillion Indonesian Rupiah ($8.45 billion). The company initially signed an agreement with the Indonesian government in late 2020 as part of the "Indonesian Grand Project" package, which aimed to develop the EV battery supply chain.
In a recent statement, LGES cited various factors, including market conditions and the investment environment, as reasons for its decision to exit the project. Despite this withdrawal, LGES plans to continue exploring collaborative opportunities with the Indonesian government through its joint venture, HLI Green Power. This venture, led by LGES and Hyundai Motor Group, inaugurated Indonesia's first EV battery cell production plant last year, with an annual capacity of 10 gigawatt-hours. The facility is set to expand further in its second phase of investment.
The Indonesian Ministry of Investment and state-owned companies Aneka Tambang and Indonesia Battery Corporation had initially planned to collaborate with LGES on this project but have not yet responded to requests for comment.
