Failed EV Battery Investment Projects in Indonesia

LG Energy Solution Ltd (LGES) withdrawing from the Titan Project further extends the list of foreign investors exiting Indonesia, despite the nation's ambition to become a global electric vehicle (EV) battery production hub.

In June 2024, European investors BASF SE and Eramet SA also pulled out from the Sonic Bay nickel smelter project in Weda Bay, North Maluku, which was intended to support Indonesia’s EV battery ecosystem.

In less than 10 months, Indonesia has seen the departure of at least three key investors from its EV battery projects.

Meanwhile, updates on projects involving Hon Hai Precision Industry Co (Foxconn) and Britishvolt have also stalled, with no significant progress reported up to 2025.

LGES Exits the Titan Project

In April 2025, LGES officially announced its withdrawal from the US$7.7 billion (around IDR 129.84 trillion) Titan Project, citing "changing market conditions."

The Titan Project was a partnership between South Korean investors and the Indonesia Battery Corporation (IBC).

However, Investment Minister Rosan Roeslani clarified that the Indonesian government initiated the termination, frustrated by prolonged negotiations with LGES. The termination letter was issued by the Ministry of Energy and Mineral Resources (ESDM) on January 31, 2025.

The leadership of the Titan Project consortium has since shifted to China’s Zhejiang Huayou Cobalt Co, without altering the overall roadmap for Indonesia's nickel downstream strategy.

BASF and Eramet Exit Sonic Bay

In mid-2024, BASF and Eramet officially abandoned the US$2.6 billion Sonic Bay smelter project.

Sonic Bay was designed to produce key EV battery materials using HPAL technology. However, BASF withdrew after an internal review, and Eramet cited concerns about resource competition in the increasingly crowded Weda Bay area.

Bruno Faour of Eramet Indonesia pointed to issues with land, water, and nickel ore availability as major reasons for their exit.

Foxconn and Britishvolt Projects Still Uncertain

Foxconn’s investment plans in Indonesia remain stalled. Although a memorandum of understanding (MoU) was signed in 2022, no major progress has materialized due to ongoing negotiations.

Similarly, Britishvolt’s plans for sustainable nickel sulfate production have yet to advance, largely due to global economic uncertainties.