Following the withdrawal of the South Korean LG consortium from a multi-billion-dollar battery project in Indonesia, the government in Jakarta has now presented a new strategic partner. According to the Indonesian Energy Ministry, Chinese raw materials group Zhejiang Huayou Cobalt will take over from LG Energy Solution in the so-called Indonesia Grand Package.
Project schedule to remains unchanged
The total volume of the project is still valued at the equivalent of approximately 8.42 billion US dollars. Based on the extensive nickel deposits in Indonesia, the project aims to establish a complete supply chain for electric vehicle batteries. In the future, Huayou will be involved in the implementation together with state-controlled Indonesian companies. Energy Minister Bahlil Lahadalia claims the change of investors is a standard procedure for large-scale projects of this magnitude. The plans for the industrial use of raw materials in the country will be continued without any changes. Start of construction for part of the project is scheduled to take place in 2025.
