LG Boosts Battery Investment in Indonesia with $1.7 Billion Commitment

LG Boosts Battery Investment in Indonesia with $1.7 Billion Commitment

The investment minister of Indonesia announced on Tuesday that South Korea’s LG group is still committed to Indonesia and will add $1.7 billion to its investment in a battery cell factory, bringing the project’s total investment to $2.8 billion.

Following news last week that LG Energy Solution, or LGES, had pulled out of another project in Indonesia, a 142 trillion rupiah ($8.46 billion) project in the EV battery supply chain, blaming market conditions and the investment environment, Minister Rosan Roeslani made the comment.

In reference to a battery factory in West Java, he stated at a press conference, “LG’s commitment is still significant. One specific example is that they will invest in the development of this JV.”

Last Monday, LG said that it would keep funding HLI Green Power, a battery joint venture headed by Hyundai Motor Group and LGES.

A request for comment on Tuesday was not immediately answered by LGES.

The JV announced plans to start a second phase of investment after launching Indonesia’s first battery cell production facility last year, which has an annual capacity of 10 gigawatt hours.

According to Indonesia, LGES will be replaced in the project from which it withdrew by Zhejiang Huayou Cobalt (603799.SS) of China.