China’s Huayou Replaces LG Energy in Indonesia’s $9.8 Billion EV Battery Project

Jakarta – Chinese firm Huayou will replace South Korea’s LG Energy Solution as a key investor in Indonesia’s electric vehicle (EV) battery supply chain project, according to a statement by Minister of Energy and Mineral Resources Bahlil Lahadalia. The announcement follows LG’s withdrawal from the strategic investment agreement.

Despite the change in investors, the EV battery project — valued at US$9.8 billion or around IDR 164 trillion — will proceed as planned. The original agreement between Indonesia and LG was signed on December 18, 2020.

“The structure of the Grand Package remains unchanged. Infrastructure development and production planning continue according to the original roadmap. The only adjustment is the replacement of LG with Huayou in joint ventures 1, 2, and 3,” Bahlil explained in a statement released Wednesday (April 23, 2025).

Indonesia’s first EV battery cell factory — a joint venture between Hyundai Motor Group and LG via PT HLI Green Power — is already operational in Karawang, West Java, with an annual production capacity of 10 GWh.

Addressing public concerns over geopolitical tensions and global economic uncertainties, Bahlil affirmed that the next phase of investment, worth nearly US$8 billion, remains on track with groundbreaking set to take place this year.

“There is no cancellation or suspension of the investment,” he emphasized.

Bahlil added that the Indonesian government, through coordination between the Ministry of Energy, Ministry of Investment/BKPM, and the Downstream Task Force, is committed to ensuring the full and timely implementation of the Grand Package.

“Investor shifts are common in large-scale projects. What matters is the continued commitment of all stakeholders. This project is progressing well, and our target to make Indonesia a global EV hub remains unchanged,” Bahlil concluded.