LGES Exits Indonesia EV Battery Project Amid Strategic Shift

LGES

LGES exits Indonesia EV project

LGES exits Indonesia EV project, marking a significant shift in its global battery strategy.

South Korea’s LG Energy Solution (LGES) has officially withdrawn from Indonesia’s $8.4 billion Grand Package EV battery initiative.

The project originally included LGES, LG Chem, Posco Future M, Huayou, Antam, and Indonesia Battery Corporation. Plans had outlined a complete value chain: from mining and smelting to precursor, cathode, and battery cell production.

Strategic Refocus on Core Ventures and Energy Storage

LGES exits Indonesia EV project while reaffirming its commitment to the HLI Green Power joint venture with Hyundai Motor. This Indonesian JV plant has a 10 GWh annual battery cell capacity and began mass production in April 2024.

Meanwhile, LGES continues to diversify beyond the EV battery sector. It has secured energy storage system (ESS) battery contracts with Delta Electronics in Taiwan and PGE in Poland.

Indonesia Presence Maintained Through LFP and JV Assets

Despite the LGES exit from the Indonesia EV project, the company retains stakes in key Indonesian operations. Earlier this year, LGES invested in a lithium iron phosphate (LFP) cathode plant with China’s Lopal Tech.

LGES emphasized its intent to continue collaboration with the Indonesian government, particularly via its joint venture HLI Green Power. This signals a strategic recalibration rather than a full-scale withdrawal from the Indonesian battery ecosystem.

The Metalnomist Commentary

LGES’s departure reflects a broader recalibration of battery majors toward diversified revenue streams and scalable ESS markets. The company’s sustained Indonesian footprint suggests long-term positioning, albeit through leaner, more focused partnerships.