JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed the reason for the government behind the resignation of a South Korean company, LG Energy Solution in the Indonesian electric vehicle battery ecosystem (EV) project.
Bahlil said the reason behind LG's resignation was because the government was taking steps to nominate LG's contract on the Titan project. This is because the company from the country of ginseng has not carried out the contents of the agreement listed in the Memorandum of Understanding (MoU)
"The LG is now out of position. Not out, we are indeed nominated. Why are we nominated? Because the commitment that has been agreed in the MoU has not been implemented," said Bahlil, quoted on Saturday, May 24.
He added, of the total investment of 9.8 billion US dollars, only 1.2 billion US dollars was realized. For this reason, in January 2025 Bahlil admitted that he had issued a contract termination letter with LG and was later replaced by Zhejiang Huayou Cobalt.
Just so you know, the investment is for the project to build an electric vehicle battery factory in the consortium PT Hyundai LG Industry (HLI) Green Power which has been inaugurated and is starting to produce.
"Well, because he did not continue, it was Huayou who replaced him. Yesterday it was broken at the meeting and in January I issued a letter to be nominated for LG," explained Bahlil.
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Earlier on Thursday, May 22, President Prabowo was summoned by Bahlil to report the continuation of the electric vehicle (EV) or Indonesia Grand Package battery project.
Bahlil said that the Government had broken a partnership with LG regarding the electric vehicle battery project.
LG's position, he said, had been replaced by a Chinese company Huayou.
"From the start, we have cut ties (with LG) and will cooperate with Huayou. So, this is a new partner and it has been completed. We just need to provide a report to the President," said Bahlil.
The Indonesia Grand Package project targets the construction of electric vehicle batteries with a capacity of 30 GWh. On its way, LG has built the first 10 GWh and now there are 20 GWh left which Huayou will continue.
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