South Korea's LG Energy Solution has announced its official exit from a project in Indonesia concerning electric vehicle battery production, valued at 142 trillion rupiah ($8.45 billion). In late 2020, LGES and the Indonesian government finalised an agreement regarding the Indonesia Grand Package project, which encompasses investments throughout the EV battery supply chain, per a Reuters report.
"Considering multiple factors such as market conditions and the investment landscape, we have decided to officially exit the Indonesia GP (Grand Package) project," LGES stated in an announcement. "Nonetheless, we will persist in investigating different paths for collaboration with the Indonesian government, focusing on the Indonesia battery joint venture, HLI Green Power," it stated.
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HLI Green Power is a collaboration spearheaded by LGES and Hyundai Motor Group. Last year, the company launched Indonesia's inaugural battery cell manufacturing facility for EVs, boasting an annual capacity of 10 Gigawatt hours of battery cells, with intentions to increase this capacity in the second phase of investment. Indonesia's investment ministry, along with state-owned firms Aneka Tambang and Indonesia Battery Corporation, did not promptly reply to inquiries for comments. They intended to collaborate with LGES on the project, per reports.
($1 = 16,810.0000 rupiah)
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