Bahlil Ensures The EV Battery Investment Project Continues Even Though LG Leaves

Minister of Energy and Mineral Resources Bahlil Lahadalia (photo: dock. VOI)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) ensures that the US$9.8 billion electric vehicle (EV) investment project that has been agreed upon between Indonesia and LG Energy Solution from South Korea continues as planned, although LG Energy Solution has decided to withdraw. For information, this project includes the development of an integrated EV battery supply chain, from mining to battery production.

The Minister of Energy and Mineral Resources, Bahlil Lahadalia emphasized that overall projects did not experience any fundamental changes. What happened was the adjustment of investment partners in the joint venture (JV) structure.

"Conceptually, the construction of this Grand Package has not changed. Infrastructure and production plans remain in accordance with the initial roadmap. Changes only occur at the investor level, where LG no longer continues its involvement in the new JV 1, 2, and 3, and has been replaced by strategic partners from China, namely Huayou, with our SOEs," Bahlil said in a statement to the media, Wednesday, April 23.

Bahlil also responded to public concerns regarding the impact of geopolitical tensions and global economic conditions on the continuity of the project. Bahlil emphasized that this project was not affected by global dynamics such as war or economic uncertainty.

"Investasi senilai hampir 8 miliar dolar AS untuk pengembangan tahap berikutnya tetap berjalan. Groundbreaking tahap lanjutan direncanakan dilakukan dalam tahun ini, sehingga tidak ada penghentian atau pembatalkan investasi sebagaimana mungkin dikhawatirkan masyarakat," jelas Bahlil.

Overall, he continued, the government has again shown the government's commitment to maintaining the sustainability of the electric vehicle battery downstream project.

Bahlil assessed that the change of investors was a common dynamic in large-scale projects.

"What is important for us is that all partners remain committed, and the government is here to ensure that the transition process runs smoothly. This project has been running, some have been inaugurated and started production, and the rest will continue to be monitored completely according to the target. Nothing has changed from the initial goal of making Indonesia the center of the world's electric vehicle industry," Bahlil explained.

The government, through cross-sectoral cooperation between the Ministry of Energy and Mineral Resources, the Ministry of Investment and Downstreaming / Investment Coordinating Agency (BKPM), and the Downstream Task Force, continues to commit to ensuring that all projects in the Grand Package are realized on time and according to standards.

"This step is an integral part of the downstream strategy of the nickel industry and the national energy transition to a global competitive electric vehicle ecosystem," said Bahlil.