May 7, 2025 /eszoneo/ —
Amid shifting market dynamics and evolving investment environments, Indonesia continues to attract substantial commitments in the battery manufacturing sector. South Korea’s LG Group has announced an additional $1.7 billion investment in its West Java battery cell factory, bringing total investment to $2.8 billion. This move underscores ongoing confidence in Indonesia’s localization of EV battery production despite recent adjustments in other supply chain ventures. The expansion aligns with broader trends of Southeast Asian markets scaling up energy storage and electric vehicle manufacturing capabilities.
South Korea's LG group remains committed to Indonesia and will increase its investment in a battery cell factory by $1.7 billion, raising total investment in the project to $2.8 billion, Indonesia's investment minister said on Tuesday.
The comment from minister Rosan Roeslani follows confirmation last week that LG Energy Solution, or LGES, has withdrawn from another venture in Indonesia, a 142 trillion rupiah ($8.46 billion) project in the EV battery supply chain, citing market conditions and the investment environment.
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"The commitment from LG remains big, a concrete example is that they will invest in the development of this JV," he told a press conference, referring to a battery plant in West Java.
LG last week said it will continue its investment in a battery joint venture, HLI Green Power, led by LGES and Hyundai Motor Group.
LGES did not immediately respond to request for comment on Tuesday.
Last year the JV inaugurated Indonesia's first battery cell production plant with an annual capacity of 10 gigawatt hours and said will embark on second phase of investment.
China's Zhejiang Huayou Cobalt (603799.SS), opens new tab will replace LGES in the project from which it has withdrawn, Indonesia has said.
SOURCE:Reuters
