South Korea’s LG Group has reaffirmed its commitment to Indonesia, announcing a $1.7 billion increase in its investment in a battery cell factory, raising the total investment in the project to $2.8 billion.
The announcement was made by Indonesia’s Investment Minister, Rosan Roeslani, on Tuesday.
The comment follows confirmation last week that LG Energy Solution (LGES) had withdrawn from a separate $8.46 billion project in the country’s EV battery supply chain, citing unfavorable market conditions and the investment environment.
“The commitment from LG remains big, a concrete example is that they will invest in the development of this JV,” Roeslani told a press conference, referring to the battery plant in West Java.
LGES and Hyundai Motor Group lead the JV, HLI Green Power, which is focused on battery production.
Last year, the JV inaugurated Indonesia’s first battery cell production plant, with an annual capacity of 10 gigawatt hours. The plant is expected to begin its second phase of investment soon.
In response to LGES’s withdrawal, China’s Zhejiang Huayou Cobalt (603799.SS) will replace LGES in the EV battery project, according to Indonesian officials.
