LG Energy Withdraws from Titan Project, IBC Ensures Dragon Project with China Continues
LG Energy Solution Ltd (LGES) has officially resigned from one of the strategic electric vehicle battery projects in Indonesia, namely the Titan project. However, the Indonesian Battery Company (IBC) ensures that other projects, including the Dragon project, will continue as planned.
Collaboration of IBC and CBL in Dragon Project
The Dragon project is the result of a collaboration between Indonesia through IBC and a Chinese company, Ningbo Contemporary Brunp Legend Co Ltd (CBL), which is part of the global battery giant, Contemporary Amperex Technology Co Ltd. (CATL).
IBC’s Vice President of Commercial and Marketing, Bayu Hermawan, confirmed that both the Titan and Dragon projects will continue as planned, even though LGES has decided to leave.
“Of course the two projects, namely Titan and Dragon, will continue according to the original plan,” said Bayu when met in Jakarta, Thursday (24/04).
Dragon production starts late 2026
Bayu further explained that the Dragon project is already in the development stage in Karawang, West Java. Initial production is targeted to start at the end of 2026.
“If the dragon project, now it is progressing in Karawang. If production starts at the end of 2026, of course this will be done with leaning up, it can’t be 100% full immediately,” he explained.
Adjustment of investment value and production capacity
Although this project is running relatively smoothly in terms of production and consortium, the investment value and production targets of the Dragon project have been adjusted compared to the initial plan.
The Ministry of Investment and the Investment Coordinating Board (BKPM) have acknowledged the existence of diminution (downsizing) in the amount of investment and production capacity of the project.
Deputy for Investment Promotion at the Ministry of Investment, Nurul Ichwan, explained that this adjustment occurred because CATL had received an outward direct investment (ODI) approval from the Chinese government.
“According to the progress that has occurred, in terms of the demand for electric vehicles, it is not as expected.
Initial Investment Cut, Production Capacity Down
After obtaining ODI’s approval, the initial investment value from CATL which originally reached US$ 1.18 billion (around Rp. 19.13 trillion with the assumption of an exchange rate of Rp. 16,213 per US dollar), is now significantly reduced.
The final investment for the Dragon project is set at US$ 417 million, with a production capacity reduced to 6.9 Gigawatt Hour (GWH) per year, from the initial plan of 15 GWh.
