WNAM REPORT: President Prabowo Subianto has approved the Chinese consortium Huayou to succeed South Korea’s LG in the US$9.8 billion integrated electric vehicle (EV) battery factory development project in Indonesia.
“The president has approved the inclusion of the Huayou consortium, and we are ready for the groundbreaking,” Energy and Mineral Resources Minister Bahlil Lahadalia announced after a closed-door meeting with the president at the Presidential Palace on Thursday.
He stated that Indonesian state-owned enterprises hold a 51 percent majority stake in the upstreaming section of the integrated EV battery factory project, known as “Project Titan.”
Meanwhile, the government aims to increase its stake in the downstreaming section, as it currently holds 30 percent, with Danantara set to participate in the joint venture.
“The president has instructed us to increase our ownership to above 40-50 percent. Negotiations are ongoing,” Lahadalia stated.
On the same occasion, the minister refuted claims that LG had “withdrawn” from the EV battery factory project, clarifying that the government had decided to end cooperation with LG.
“I was then the task force chief who decided to cancel what LG is doing because they took too much time,” he stated.
After LG’s departure, Lahadalia said he, along with Investment Minister Rosan Roeslani and State-owned Enterprises Minister Erick Thohir, decided to appoint Huayou as LG’s successor in the project, which President Prabowo approved.
The project involved developing a 30 GWh-capacity EV battery factory. LG completed the first 10 GWh before leaving, and Huayou will continue with the remaining 20 GWh.
Since LG invested US$1.2 billion in the US$9.8 billion project, Huayou will complete the remainder with its US$8.6 billion investments.
