South Korea’s LG Energy Solution exits from $8.4bn Indonesia project

South Korea’s LG Energy Solution mentioned Tuesday it had withdrawn from a multibillion-dollar project to construct electrical batteries in Indonesia, citing a variety of points together with the “funding setting.”

The corporate signed a 142 trillion rupiah ($8.4 billion) deal in 2020 on the so-called Grand Bundle project, which aimed to determine a neighborhood electrical automobile battery worth chain within the nation.

“Making an allowance for numerous components, together with market situations and funding setting, we’ve got agreed to formally withdraw from the Indonesia GP (Grand Bundle) project,” it informed AFP in a press release.

“Nonetheless, we’ll proceed to discover numerous avenues of collaboration with the Indonesian authorities, centering on the Indonesia battery three way partnership, HLI Inexperienced Energy.”

HLI Inexperienced Energy, a three way partnership between LG Energy Solution and Hyundai Motor Group, operates Indonesia’s first electrical automobile battery plant, which was launched in 2024 with a manufacturing capability of as much as 10 Gigawatt hours (GWh) of cells yearly.

Indonesia has been in search of to place itself as a key participant within the world EV provide chain by leveraging its huge nickel reserve to draw funding.

Tri Winarno, director basic of coal and mineral of the power and mineral sources ministry, didn’t instantly reply to AFP’s request for remark.

However native media quoted him as saying on Monday that the withdrawal wouldn’t affect the nation’s nickel downstreaming agenda, whereas expressing optimism the federal government would discover different companions to additional its electrical automobile ambitions.

© 2025 AFP