EV Project Still On Despite LG Exit, Says Minister Bahlil

Jakarta – Energy Minister Bahlil Lahadalia confirmed that Indonesia's flagship EV project will move forward, even though LG Energy Solution has withdrawn from the partnership.

“The Grand Package project remains unchanged. Infrastructure and production plans are on track,” he said on Monday (April 22, 2025).

The $9.8B initiative covers a full EV battery supply chain. While LG stepped out of three JVs, they’ve been replaced by China’s Huayou and Indonesian SOEs.

“It’s normal for investors to change in big projects. The key is, all partners stay committed,” Bahlil added.

Some parts are already running, and the end goal—making Indonesia a global EV hub—is unchanged.

The first EV battery cell plant, a Hyundai-LG joint venture, was launched by President Jokowi in July 2024 in Karawang, with a 10 GWh capacity.

Addressing concerns about global conflict and market uncertainty, Bahlil said, “There’s no disruption. The next phase, worth $8 billion, will start in 2025.”

The government is working across ministries and agencies to ensure the project stays on time and within standards, driving Indonesia’s nickel downstreaming and clean energy transition.