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Ministry lambasts LG for exiting battery project in Indonesia
The Energy and Mineral Resources Ministry has criticized South Korea’s LG Energy Solution’s decision to withdraw from a Rp 142 trillion (US$8.45 billion) project to develop electric vehicle (EV) battery manufacturing in Indonesia.
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Boxes of battery cells are stored for shipment at the battery manufacturing plant at PT HLI Green Power, Indonesia's first electric vehicle battery cell manufacturer, in Karawang, West Java, on Aug. 28, 2024. (AFP/Yasuyoshi Chiba)
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he Energy and Mineral Resources Ministry has criticized LG Energy Solution’ decision to withdraw from a Rp 142 trillion (US$8.45 billion) project to develop electric vehicle (EV) battery manufacturing in Indonesia.
LG Energy Solution signed a deal with the government in late 2020 to develop a project dubbed Indonesia Grand Package, which included investments across the EV battery supply chain.
The Seoul-based company announced in a statement on Monday that it would withdraw from the Indonesia Grand Package project, citing factors such as market conditions and the investment climate.
The energy ministry’s minerals and coal director general, Tri Winarno, said LG’s repeated delays in meeting investment targets had stalled the project.
“Are they [LG] serious about investing here? If not, it’s fine. It means there was no real intention from the beginning,” he said in Jakarta on Monday, as reported by Bisnis.
Tri remained optimistic that the battery giant’s withdrawal “would not impede” Indonesia’s larger effort to develop its nickel downstream industry, particularly in battery production.
“There will be others [willing to take their place],” he said, as reported by Bisnis.
