The Minister of Investment confirmed that Chinese nickel processing giant Huayou will join the Indonesian EV battery consortium, replacing South Korea's LG Energy Solution which has withdrawn. Huayou operates in Indonesia through local subsidiaries, has been involved in key nickel processing projects, and is well-versed in the industry. LG Energy Solution had previously formed a consortium with Indonesia Battery Corporation and state-owned mining company Antam, planning a $9.8 billion joint investment project covering upstream mining, smelter construction, cathode processing plants, and battery factories. However, due to prolonged delays and stalled negotiations, in January the Minister of Energy and Mineral Resources formally notified LG Chem and LG Energy Solution to terminate the consortium cooperation, and LG and its partners had already paid part of the $1.1 billion initial investment. Huayou expressed interest in joining the consortium as early as last year, and after joining, the overall investment target for the project remains $9.8 billion. This EV battery consortium is a key part of Indonesia's strategy to develop a complete domestic EV supply chain and accelerate the establishment of its first EV ecosystem.
The Minister of Investment confirmed that Chinese nickel processing giant Huayou will join the Indonesian EV battery consortium, replacing South Korea's LG Energy Solution which has withdrawn. Huayou operates in Indonesia through local subsidiaries, has been involved in key nickel processing projects, and is well-versed in the industry. LG Energy Solution had previously formed a consortium with Indonesia Battery Corporation and state-owned mining company Antam, planning a $9.8 billion joint investment project covering upstream mining, smelter construction, cathode processing plants, and battery factories. However, due to prolonged delays and stalled negotiations, in January the Minister of Energy and Mineral Resources formally notified LG Chem and LG Energy Solution to terminate the consortium cooperation, and LG and its partners had already paid part of the $1.1 billion initial investment. Huayou expressed interest in joining the consortium as early as last year, and after joining, the overall investment target for the project remains $9.8 billion. This EV battery consortium is a key part of Indonesia's strategy to develop a complete domestic EV supply chain and accelerate the establishment of its first EV ecosystem.