Government Asks LG to Withdraw From EV Battery Ecosystem Project

KatadataOTO – Rosan Perkasa Roeslani, Minister of Investment and Downstreaming, revealed that LG Energy Solution did not withdraw from the battery ecosystem development project. Instead, it was the Indonesian government that asked the South Korean company to leave.

This is because the government considered the company to be taking too long in negotiations. Rosan said the process has been ongoing for five years since 2020.

“So, it was reported that LG withdrew, but actually, it's more accurate to say that we (the government) asked them to leave. This was based on a letter dated January 31, 2025, issued by the Ministry of Energy and Mineral Resources of the Republic of Indonesia,” said Rosan, as reported by Antara (24/04).

He revealed that the company was still continuing negotiations while the government wanted the project to proceed immediately.

Photo : Yonhap

The letter also smoothed the way for Chinese investor Huayou, which had expressed its desire to invest in the battery ecosystem sector. Huayou's intention to join the project consortium in Indonesia has been revealed since 2024.

"So, actually, Huayou was already in the LG consortium. So they are now the leading consortium," said the Minister of Investment.

Rosan stated that he had met directly with Huayou and the outcome of their meeting was positive.
According to Rosan, Huayou is interested in investing because it has the technology and has also previously invested in the same field in Indonesia.

Rosan also confirmed that LG is still investing in Indonesia. The company has realized its investment in one of its joint venture projects worth USD 1.1 billion, or around IDR 18.56 trillion.

Photo : Carscoops

Meanwhile, Bahlil Lahadalia, Minister of Energy and Mineral Resources (ESDM), revealed that changing investors midway is common for large-scale projects.

“For us, the most important thing is that all partners remain committed and the government is present to ensure the transition process runs smoothly. The project is already underway, some parts have been inaugurated and have started production, while the rest will continue to be monitored until completion according to the target,” he then affirmed.