South Korea's LGES exits Indonesia's $8.4bn EV project

Market: Battery materials, Metals
22/04/25

Top South Korean battery firm LG Energy Solution (LGES) has pulled out of Indonesia's Grand Package project, which is supposed to be an integrated electric vehicle (EV) battery project worth 142 trillion Indonesia rupiah ($8.4bn).

"Taking into account various factors, including market conditions and investment environment, we have agreed to formally withdraw from the Indonesia [Grand Package] GP project," LGES told Argus on 22 April.

The mega project was in the making since 2019. It involves an LG consortium that consists of multiple South Korean firms including LGES, LG Chem, LX International and Posco Future M, major Chinese cobalt refiner and nickel-cobalt-manganese precursor producer Huayou, Indonesian state-controlled mining firm Aneka Tambang (Antam) as well as consortium Indonesia Battery.

Original plans included building a $1.1bn battery cell plant and were supposed to be followed by a smelter, precursor and cathode plant as well as "mining cooperation" with Antam.

"However, we will continue to explore various avenues of collaboration with the Indonesian government, centering on the Indonesia battery joint venture, HLI Green Power," the firm added.

The HLI Green Power is LGES' 10 GWh/yr Indonesian battery production joint venture with South Korean conglomerate Hyundai Motor, which started mass production last April. LGES earlier this year also invested in Chinese battery cathode maker Lopal Tech's lithium iron phosphate plant in Indonesia.

LGES last year said it plans to reduce its dependence on the EV battery business and has signed multiple energy storage system battery supply deals so far this year, including with Taiwanese electronics manufacturing firm Delta Electronics and Polish state-controlled utility PGE.

By Joseph Ho

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