LG Canceled Investment, BKPM Will Meet Huayou

Electric Vehicle Battery (Photo: Unsplash)

JAKARTA - The Ministry of Investment and Downstreaming / Investment Coordinating Agency (BKPM) stated that it will soon hold a meeting with Huayou, a company from China to discuss the consortium of electric vehicle (EV) battery ecosystem projects previously led by LG.

"We also want to meet God willing, if not this week, next week, we will meet with Huayou, discuss this matter, finalize," said Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM Nurul Ichwan quoting Antara.

Nurul Ichwan conveyed that after confirming that LG left the consortium, his party would create a new design, as well as plan to involve other parties in the electric vehicle battery ecosystem facilities in the country.

"Then we facilitate the formation of the joint venture," he said.

Previously, he explained that the EV battery project, which is called the Indonesia Grand Package, has realized US$ 1.2 billion or Rp20.2 trillion, and later Huayou will fill most of the remaining investments that reach US$8.6 billion or Rp145.2 trillion, with four joint ventures.

The Joint Venture refers to investments in nickel mines, the manufacture of precursors, cathodes, anodes, cell batteries, battery packs, and battery recycling.

"Surely this Huayou will not be alone, will definitely work together later with other partners that we will try to approach as well," he said.

Minister of Investment and Downstreaming Rosan Perkasa Roeslani explained that LG Energy Solution did not resign from some of its investments in battery ecosystem projects, but the Indonesian government asked LG to step down because negotiations took too long.

Rosan said negotiations with LG had been going on for five years since 2020.

Earlier it was said that from there (LG) decided, actually more precisely from us deciding. It was based on a letter issued on January 31, 2025 by the Ministry of Energy and Mineral Resources of the Republic of Indonesia. Why was the letter issued? Because, indeed this negotiation has been too long, while we want all of this to go well, quickly because negotiations have been going on for five years," said Rosan during a press conference at the Presidential Office, Presidential Palace, Jakarta, Wednesday (23/4) night.

Rosan continued the letter was then issued to LG, as Chinese investor Huayou has expressed his desire to invest in the battery ecosystem sector. Huayou's desire to be included in the consortium of battery projects in Indonesia has been revealed since 2024.