Huayou Replaces LG in EV Battery Investment in Indonesia

The Minister of Investment and Downstream, Rosan Roeslani, revealed the reason the government appointed a Chinese company, Huayou, as a new partner in the electric vehicle battery (EV) investment project in Indonesia. Previously, this project was held by LG from South Korea.

According to Rosan, this decision was taken after considering the long negotiation process with LG that has been going on since 2020. Finally, the government decided to end the collaboration with LG and switch to Huayou which is considered more serious commitment.

Revocation of agreement with LG

As a follow-up, the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has issued a letter of revocation of the cooperation agreement with LG.

“Therefore, the letter was made because Huayou was really interested in investing, moreover the technology he had was available,” explained Rosan when met at the Presidential Palace Complex, Jakarta, Wednesday night (23/4).

Huayou Experience and Commitment

Rosan also added that Huayou is not a new player in the industry. The company has made similar investments in Indonesia, including in the Weda Bay area.

“It’s true, they have invested a significant amount before and focus on the same area. They have invested in Weda Bay as well. Therefore, they really understand the situation,” he said.

Fixed Investment Value, Player Changed

Despite the change in players, the investment value involved remains the same. Huayou took over the role of LG in this project with a total investment value of USD 9.8 billion.

“They only replace LG’s position. So, the amount of investment remains the same, which is USD 9.8 billion,” concluded Rosan.