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President Joko Widodo (right) listens to an explanation of the manufacturing process of cell batteries while inaugurating the first groundbreaking stone marking the construction of an electric car battery factory in Karawang, West Java, Wednesday (15/9/2021). This project to build the first electric car battery plant in Southeast Asia is the realization of an investment by a consortium of LG and Hyundai consisting of Hyundai Motor Company, KIA Corporation, Hyundai Mobis and LG Energy Solution.
REPUBLIKA.CO.ID, JAKARTA -- The Ministry of Energy and Mineral Resources (ESDM) ensures that the electric vehicle battery (EV) investment project continues as planned. This was despite LG Energy Solution deciding to withdraw from some of the projects included in the Indonesia Grand Package scheme.
“Conceptually, the development of this Grand Package has not changed anything. Infrastructure and production plans remain in accordance with the initial roadmap,” said Minister of ESDM Bahlil Lahadalia in Jakarta, Wednesday (23/4/2025).
The changes taking place in the project, he continued, are only at the investor level, where LG no longer continues involvement on the new JVs 1, 2 and 3.
“And (LG) has been replaced by a strategic partner from China, namely Huayou, alongside our state-owned enterprises,” Bahlil said.
The project was previously agreed between Indonesia and LG Energy Solution of South Korea on December 18, 2020. The Indonesia Grand Package includes the development of an integrated EV battery supply chain, from mining to battery production.
As part of the investment commitment, on July 3, 2024, 7th President Joko Widodo inaugurated Indonesia's first EV battery cell factory located in Karawang, West Java.
The plant is the result of cooperation between Hyundai Motor Group and LG Energy Solution through PT HLI Green Power and has been operating with an annual production capacity of 10 gigawatt hours (GWh).
On the occasion, Bahlil also responded to public concerns regarding the impact of geopolitical tensions and global economic conditions on the project's viability.
“We need to say that this project is not affected by global dynamics such as war or economic uncertainty. Investments worth almost 8 billion US dollars for the next phase of development remain ongoing,” he said.
sumber : ANTARA
