China’s Huayou to Join Indonesia EV Battery Project Following LG’s Exit
Jakarta. Chinese nickel processing giant Huayou is set to join an Indonesian electric vehicle (EV) battery consortium, replacing South Korea’s LG Energy Solution, a senior official confirmed on Wednesday.
Huayou, which has been operating in Indonesia through its local subsidiary Huayou Indonesia, is already involved in key nickel processing projects, including operations in Weda Bay, Halmahera, North Maluku.
“Huayou has invested in similar industries and understands the business well,” Investment Minister Rosan Roeslani said in Jakarta.
The move comes after LG Energy Solution announced its withdrawal from the consortium -- originally formed with Indonesia Battery Corporation (IBC) and state miner Aneka Tambang (Antam) -- in a $9.8 billion joint investment project. The investment spans upstream mining ($850 million), smelter construction ($4 billion), a cathode processing plant ($1.8 billion), and a battery cell factory ($3.2 billion).
Rosan noted that LG and its partners had already disbursed part of the initial $1.1 billion investment.
He also revealed that in January, Energy and Mineral Resources Minister Bahlil Lahadalia formally notified LG Chem and LG Energy Solution of the consortium’s termination due to prolonged delays and stalled negotiations.
Huayou had already expressed interest in joining the consortium as early as last year, Rosan said, adding that the overall investment target of $9.8 billion remains unchanged with the company’s entry.
“Why Huayou? Because they’ve already made a significant investment in Weda Bay. They understand the industry and have the capacity to execute this project,” Rosan explained.
The EV battery consortium is a critical part of Indonesia’s strategy to develop a fully integrated domestic EV supply chain and accelerate the establishment of its first EV ecosystem.
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