Prabowo shifts battery project from LG to Chinese firm Huayou
JAKARTA – President of Indonesia, Prabowo Subianto, chaired a closed-door meeting aimed at accelerating the downstream development of the national electric vehicle (EV) battery industry.
The main focus of the meeting was the transition of investment from the LG consortium to Chinese company Huayou, alongside discussions on a similar project involving Chinese battery giant CATL. The meeting took place at the Merdeka Palace in Jakarta on Thursday (22/5).
Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, confirmed that the President had approved the continuation of the USD 9.8 billion project.
“This project has been approved by the President and is ready for groundbreaking. The Huayou consortium will replace LG, which has been deemed too slow,” Bahlil said in a statement quoted on Friday (23/5).
He also clarified rumours of LG’s withdrawal from the project. According to him, the decision to cancel cooperation with LG was a strategic move made by the Investment Task Force.
“Pak Rosan Roeslani (CEO of Danantara), Pak Erick Thohir (Minister for State-Owned Enterprises), and I agreed to appoint Huayou as the new partner to ensure the project moves forward swiftly,” he stressed.
The meeting also highlighted Indonesia’s strategic collaboration with Contemporary Amperex Technology Co. Limited (CATL), the largest battery manufacturer in China.
Minister of Investment and Downstreaming/Head of BKPM, Rosan Roeslani, stated that Danantara, Indonesia’s sovereign wealth fund, would play a key role in strengthening the country’s position in this initiative.
“With Danantara’s involvement, funding is no longer an issue. The project promises attractive investment returns, job creation, and long-term economic impact,” said Rosan.
Through the involvement of Huayou and CATL, the government is aiming for full control over the electric vehicle supply chain—from mining to battery production—in an integrated system referred to as the “green package.”
Also present at the meeting were Coordinating Minister for Economic Affairs Airlangga Hartarto, Minister for State-Owned Enterprises Erick Thohir, Cabinet Secretary Teddy Indra Wijaya, Deputy Minister of Industry Faisol Riza, and Danantara COO Dony Oskaria. (EF/ZH)