LG Energy Solution (LGES) has pulled out from a Rp142 trillion (RM36.9 billion) deal it signed with the Indonesian government in 2020 – called Indonesia Grand Package – to develop EV battery manufacturing in the country, Reuters reports.
“Taking into account various factors, including market conditions and investment environment, we have agreed to formally withdraw from the Indonesia GP (Grand Package) project. However, we will continue to explore various avenues of collaboration with the Indonesian government, centering on the Indonesia battery joint venture, HLI Green Power,” LGES said in a statement.
HLI Green Power, an LGES-Hyundai Motor Group joint-venture, last year inaugurated Indonesia’s first battery cell production plant with a 10-gigawatt-hour annual capacity, with plans to expand the capacity in the second investment phase.
“Even though LG has exited, Indonesia remains convinced our nickel is more competitive than other countries,” energy ministry official Tri Winarno told reporters, adding that the country will continue seeking foreign partners to develop the battery industry.
Indonesia Battery Corporation and miner Aneka Tambang were among the state-controlled firms hoping to partner with LGES; the former went on to establish a joint-venture with CBL, a CATL subsidiary.
News of Hyundai and LG wanting to jointly make EV batteries in Indonesia first surfaced in 2020, and the joint-venture was announced in July 2021 before plant construction began that September. In 2022, the two Korean companies secured US$710 million (RM3.1 billion) in financing for the plant.
Looking to sell your car? Sell it with Carro.
Got new china partner ke
Sure Malaysia orang v happy natural maa
Tesla cancelled their investment despite having been positive about it in many negotiations. LG is also pulling out despite previously commiting to this massive investment. LOL.
People who have done business in Indonesia will understand and not be surprised. They have to fix their systemic problems first.
Not only that, But also their history with Corruption and Nepotism is the source of Indonesia’s problems.
Look at how Indonesia handles Corruption it’s still baffling to this day, not only that their Corruption Perception Index Stagnated.
Stagnate is better than us with Malaysia regressing and getting worse. Big time corrupt politicians not only escaped but also rewarded with powerful govt positions and that is really sick.
than help the legal team with all the proof..dont talk cock only
Should have stayed with BN then things wouldnt get so bad today. PH is truly mahakorup
That is the systemic problems that I meant
Car ev battery technology is moving away from nickel, new tech battery don’t use nickel anymore….
Even Phones moved to Li-Ion like 2 decades ago or more.
China already created sodium battery. It will be used in smartphone this year and will not just increase battery size but also safer than Li-Ion
yay! rupiah will drop further and can holiday in Indonesia.
please dont come to Malaysia. remember Lynas? Remember Papan, Perak? battery factory is not a good thing for us. there are other ways to get money.
Indonesia is famous for their “dirty nickel” plan mainly located in Morowali and a few other locations. Some counties and car companies have banned raw earth materials coming from Indonesia due to this “dirty nickel” syndicate. Serves them right!
Nickel is no longer future. Right now sodium battery is the future