Inp.polri.go.id - Jakarta. President Prabowo Subianto has approved the Huayou consortium to replace South Korea’s LG in Indonesia’s $9.8 billion electric vehicle (EV) battery project, Minister of Energy and Mineral Resources Bahlil Lahadalia confirmed Thursday (22/5/2025).

Speaking after a closed-door meeting at the Presidential Palace, he said that the project is now ready for groundbreaking, with no further obstacles. 

State-owned enterprises (SOEs) will hold a 51% majority stake in the upstream sector, while the downstream joint venture currently allocates a 30% stake to the Indonesian side. Efforts are underway to increase this to above 40%, with sovereign wealth fund Danantara joining the investment.

“There were misunderstandings regarding LG’s status. The truth is that we, including Pak Rosan and Minister Erick Thohir, decided to replace LG due to delays,” Minister Bahlil clarified, as quoted by antaranews.com.

The project aims to develop a 30 GWh EV battery production capacity. LG had completed the initial 10 GWh, and Huayou will continue the remaining 20 GWh. To date, $1.2 billion of the total investment has been realized. Huayou is expected to fund the remaining $8.6 billion.

(mg/inp/pr/rs)