Wedoany.com Report-Apr. 21, LG Energy Solution announced on Monday its withdrawal from a 142 trillion rupiah ($8.45 billion) electric vehicle (EV) battery project in Indonesia. The decision marks the end of the Indonesia Grand Package (GP) project, an agreement signed in late 2020 between LG and the Indonesian government to develop investments across the EV battery supply chain.
The logo of LG Energy Solution is pictured at its office building in Seoul on November 23, 2021.
“Taking into account various factors, including market conditions and investment environment, we have agreed to formally withdraw from the Indonesia GP project,” LG Energy Solution stated. The company cited careful evaluation of external factors as the basis for its decision.
Despite the withdrawal, LG emphasized its commitment to ongoing cooperation with Indonesia. “However, we will continue to explore various avenues of collaboration with the Indonesian government, centering on the Indonesia battery joint venture, HLI Green Power,” the company added. HLI Green Power, a joint venture led by LG and Hyundai Motor Group, remains a key focus. In 2024, HLI Green Power launched Indonesia’s first EV battery cell production facility, with an annual capacity of 10 gigawatt-hours. Plans are in place to expand this capacity in a second phase of investment.
The Indonesia GP project had involved planned partnerships with Indonesia’s investment ministry, state-owned Aneka Tambang, and Indonesia Battery Corporation. These entities were expected to collaborate with LG to advance the EV battery initiative. As of Monday, no immediate comments were provided by the ministry or the state companies regarding LG’s withdrawal.
LG’s decision reflects a strategic shift while maintaining its interest in Indonesia’s growing EV battery sector. The company aims to strengthen its presence through HLI Green Power and other potential opportunities, supporting Indonesia’s ambitions to develop its EV industry.
